Four senior partners at Big Four accountancy firm Ernst & Young (EY), including a leader in the firm’s compliance function, have left the company because of spiralling repercussions from a costly compliance failure. EY failed to follow U.S. and U.K. rules on lead auditor rotation, designed to ensure the independence of those responsible for issuing external audit opinions.
The error occurred on EY’s lucrative contract with Shell, worth $66 million a year. Shell has since announced that it will switch to rival Big Four firm PwC in 2027 after putting the contract out to tender. The departure of the four partners indicates that the reputational pressure has not yet subsided.
