Shell picks PwC as auditor to replace EY

LONDON, ‌Feb 6 (Reuters) - Shell ⁠has chosen PricewaterhouseCoopers (PwC) as its next auditor after a tender process, ‍with PwC set to replace EY from 2027, ‍the oil major said on Friday.

Britain's Financial Reporting Council ⁠said in December it had opened an investigation into EY's audit of Shell's 2024 financial statements over potential ​breaches of audit partner rotation rules.

Shell said in a July regulatory filing that EY had breached rules that require an accounting firm ‍to change its lead audit partner every five ‌to seven years.

At the time, the Shell said it would amend ‌its 2023 and 2024 annual reports after EY failed to comply with U.S. Securities and Exchange Commission ‌rules on partner rotation, though its financial statements would remain ​unchanged.

When asked about its reasons for changing auditor, Shell said its Audit and Risk Committee decided to ⁠conduct a tender process using the ‍same selection criteria as applied in the 2024 audit tender. These ​criteria include independence, team composition, audit ⁠scoping and regulatory compliance.

EY did not immediately respond to a request for comment. (Reporting by Shadia Nasralla. Editing by Mark Potter)

Shell