Core Viewpoint - The UK Financial Reporting Council (FRC) has initiated an investigation into Ernst & Young LLP's audit of Shell plc's financial statements for potential breaches of audit partner rotation requirements [1][2][3] Group 1: Investigation Details - The investigation was prompted by a disclosure from Shell on July 2, 2025, indicating that EY had found non-compliance with audit partner rotation rules, specifically exceeding the maximum tenure for key audit partners [2] - The FRC's Conduct Committee made the decision to open the investigation during a meeting on October 21, 2025, and it will be managed by the FRC's Enforcement Division [3] - The investigation is focused solely on the statutory auditor or audit firm and does not involve Shell or other parties, with no implication of wrongdoing at this stage [4] Group 2: Regulatory Context - Audit partner rotation rules are intended to ensure auditor independence by limiting the duration senior audit partners can work on the same engagement, particularly for large public interest entities like FTSE-listed companies [5] - The investigation reflects increased regulatory scrutiny of the UK audit market, with the FRC intensifying enforcement actions due to concerns over audit quality and governance failures [6] - This case highlights the growing governance and compliance expectations for oil and gas companies, as they navigate investor scrutiny and complex reporting obligations [7]