Core Viewpoint - EY is under increased regulatory scrutiny due to multiple investigations by the Financial Reporting Council (FRC), particularly concerning its audit of Shell's accounts and compliance with partner rotation rules [1][4]. Group 1: Investigations and Regulatory Actions - The FRC has initiated an investigation into EY's audit of Shell, marking the sixth active investigation into the firm [1]. - EY has faced scrutiny for its audits of other entities, including the Post Office, Made.com, and NMC Health [1]. - This year, EY has already incurred over £5 million in fines, including a £4.9 million penalty for serious breaches related to the audit of Thomas Cook [2]. Group 2: Partner Rotation Rules - Regulations in both the US and UK limit the duration senior partners can serve as lead auditors to prevent excessive familiarity with management [3]. - EY acknowledged that Gary Donald, the partner responsible for Shell's audit, exceeded the allowed period under these rotation rules but continued to sign off on Shell's accounts for 2023 and 2024 [3][4]. - Following the discovery of this breach, Shell had to republish its annual report in the US, signed by a different EY partner [4]. Group 3: Additional Investigations - The FRC has launched a separate investigation into two EY auditors for issuing unauthorized audit reports to unnamed companies [6]. - EY was fined £325,000 in April for signing off on accounts for Stirling Water Seafield Finance beyond the required 10-year period [6]. - Banks and publicly listed companies are classified as "public interest entities," necessitating stricter audit oversight [6]. Group 4: Company Responses - An EY spokesperson stated that the firm recognized the breach of time limitations regarding partner rotation and reported it to the FRC, emphasizing their commitment to compliance [7]. - Shell confirmed that it disclosed the EY non-compliance issue in July 2025 and re-filed its financial statements, which remain unchanged [8].

Core Points - HB&O has appointed Mathew Neal as the head of accounts in Coventry, part of a broader personnel restructuring across departments [1][6] - The Coventry office, located in Severn Stars House, employs 15 professionals, contributing to a total workforce of 100 across all HB&O locations [2] - Several promotions have been announced within the audit and accounts team, including Jack Dunne advancing to senior manager and Tim Smith becoming accounts senior after achieving ACA status [2][3] Promotions and Personnel Changes - Seven members of the audit and accounts team have received promotions, highlighting the firm's commitment to internal growth [2] - Other departments, including the virtual finance office and tax team, have also seen staff advancements, with Matt King and Chris Sudbury being promoted to senior roles [4] - The promotions are seen as recognition of the employees' contributions and alignment with the company's core values [6] Company Growth and Strategy - HB&O's managing director, Mark Ashfield, emphasized the importance of having a strong team to drive the company's ambitious growth plans in Coventry, Warwickshire, Birmingham, and the wider West Midlands [5] - The ongoing personnel changes are part of a strategy to support the company's growth and enhance client service [5][6]

Core Insights - The Institute of Chartered Accountants of India (ICAI) has approved amendments to the code of ethics to enhance international connectivity for Indian chartered accountant firms [1][2] - The ICAI (Global Networking) Guidelines, 2025 have been established to facilitate associations between Indian CA firms and international entities [2][3] Group 1: International Collaboration - The new guidelines allow Indian CA firms and networks to form associations with international entities, promoting opportunities outside India [2] - The aim is to provide small and medium-sized Indian CA firms access to international knowledge, technology, and expertise for cross-border collaborations [2] Group 2: Code of Ethics Revisions - A revised 13th Edition of the Code of Ethics will be effective from 1 April 2026, introducing changes in advertising and website usage for firms [3][4] - The updated rules allow more flexibility in advertising content and enable chartered accountants to showcase their services more effectively [3] Group 3: Compliance and Sustainability - New regulations on responding to non-compliance with laws and regulations (NOCLAR) during audits now apply to all listed entities and their subsidiaries, increasing auditor responsibility [5] - Ethical standards for sustainability assurance have been added, based on IESBA guidance, covering sustainability-related independence requirements [5] Group 4: Expanded Services - The list of Management Consultancy and Other Services (MCS) that CAs can provide has been broadened to include areas such as social impact assessment, AI-related consulting, and forensic accounting [6] - ICAI has recommended that members and their firms accept audit fees exclusively through digital payments or banking channels [6]

Core Insights - Johnston Carmichael has appointed Chris Forgan as a new tax director to enhance its tax advisory team and support growth in Scotland and beyond [1][5] - Forgan brings over a decade of experience in tax compliance and advisory, having previously worked at a Big Four accounting firm and rejoining Johnston Carmichael after serving as a tax manager [2][5] - The firm aims to provide high-quality, partner-led tax advice and Forgan will oversee tax compliance and advisory work, focusing primarily on large corporate entities [3][4] Company Strategy - The appointment of Forgan is part of Johnston Carmichael's strategy to attract and retain talented individuals who align with the company's values, contributing to its growth [5] - The firm has recently expanded its corporate tax function, adding eight new staff members during the year [5] Role and Responsibilities - Forgan will collaborate with the international tax director to develop and support corporate clients, covering areas such as corporate interest restriction, debt and loan structuring, international taxation, and tax reporting [4] - He will also provide guidance to owner-managed businesses, ensuring practical advice that aligns with commercial realities [4]

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]

Group 1 - The Financial Reporting Council of Britain has initiated an investigation into Ernst & Young's audit of Shell's 2024 financial statements [1]

Core Viewpoint - The Jiangsu Securities Regulatory Bureau has imposed administrative penalties on Yongtuo Accounting Firm for its negligent auditing practices involving three listed companies, marking the first prohibition of an audit firm from providing securities services since the 2019 revision of the Securities Law, indicating a zero-tolerance approach towards financial fraud and a commitment to purifying the market ecosystem [1][4]. Group 1: Yongtuo's Misconduct - Yongtuo Accounting Firm has engaged in serious misconduct, including planning financial fraud and acting as a "broker" for falsified transactions between companies [2]. - The firm has altered financial data without proper audit adjustments, leading to false records in the annual reports of Hongda Xingye from 2020 to 2022 [2]. - Some signing accountants did not participate in the audit, yet still issued unqualified audit reports, demonstrating a severe breach of professional ethics [2][3]. Group 2: Regulatory Response - The regulatory authority has taken strict measures, including banning Yongtuo from providing securities services and imposing fines exceeding 65 million yuan, with individual penalties for responsible personnel ranging from 200,000 to 4 million yuan [4]. - The regulatory body aims to enhance accountability among intermediary institutions and professionals, increasing the cost of violations to deter misconduct [4][5]. - Future regulatory frameworks will be strengthened, including the revision of the management measures for accounting firms engaged in securities services, to ensure proactive compliance and responsibility [4][5]. Group 3: Importance of Intermediary Accountability - The quality of intermediary services is crucial for protecting investors' rights and ensuring the healthy development of the capital market [5]. - The penalties against Yongtuo reflect a commitment to maintaining the principles of transparency and fairness in the market [5]. - A comprehensive mechanism is being established to deter violations, prevent fraud, and cultivate a culture of ethical responsibility within the industry [5].

Doeren Mayhew, an accounting practice based in Houston, Texas, US, has acquired TBK CPA, a move that it says will double its local growth in 2025. The acquisition brings nearly 35 employees to Doeren Mayhew, with four individuals joining the leadership team. Financial details of the transaction have not been disclosed. The acquisition is part of Doeren Mayhew’s growth strategy for 2025, focused on expanding its presence while maintaining its core values and vision. Doeren Mayhew Advisors Houston manag ...

UK regulator the Financial Reporting Council (FRC) has launched an investigation into Ernst & Young (EY) regarding the unauthorised issuance of auditor’s reports to clients. The purpose of the investigation is to assess the circumstances leading to these “unauthorised” signoffs and determine if auditing standards were compromised. The decision to begin this inquiry was taken by the FRC’s Conduct Committee on 22 July 2025. Two employees of EY are included in this examination, though they have not been n ...

同在28日晚，*ST立方发布公告称，公司当天收到安徽证监局行政处罚事先告知书，因被认定2021年至 2023年连续三年财务造假，安徽证监局拟对公司及10名责任人罚款合计4000万元，其中拟对公司罚款 1000万元。 与此同时，证监会官网发布通报，*ST立方严重财务造假案件，涉嫌触及重大违法强制退市情形，深交 所将依法启动退市程序。同时，证监会决定对本案所涉会计师事务所执业行为正式立案调查。对于可能 涉及的证券犯罪问题线索，将移送公安机关。 12月10日晚间，国民技术（300077）披露公告称，公司拟变更境内会计师事务所，决定聘请中审亚太会 计师事务所(特殊普通合伙)(以下简称"中审亚太会计师事务所")为公司2025年度境内财务报告及内部控 制审计机构，聘期一年。 对于变更会计师事务所的原因，国民技术表示，原拟续聘的2025年度境内会计师事务所中兴财光华会计 师事务所(特殊普通合伙)(以下简称"中兴财光华")因其他个别审计业务被证监会立案调查，为避免该事 项对公司2025年度审计工作产生影响，结合公司业务发展和审计需求等实际情况，公司拟变更2025年度 境内财务报告及内部控制审计机构为中审亚太会计师事务所。 此 ...