Core Points - The Financial Reporting Council (FRC) has initiated a formal inquiry into Ernst & Young (EY) regarding compliance with UK audit partner rotation requirements during the audit of Shell's financial statements for the year ending December 31, 2024 [1][3] - The investigation will evaluate adherence to regulations concerning the duration of service for lead audit partners, as Shell reported issues with compliance to the London Stock Exchange in July 2025 [1][2] - EY has acknowledged that the time limits for partner rotation, as per the FRC's Revised Ethical Standard, were exceeded, leading Shell to amend its annual reports for 2023 and 2024, although the underlying financial statements will remain unchanged [2][4] Group 1 - The FRC's inquiry was confirmed during a Conduct Committee meeting on October 21, 2025, and will be conducted in accordance with the Audit Enforcement Procedure [3] - EY communicated to Shell that the US audit opinions for 2023 and 2024 should not be relied upon, prompting a reassignment of responsibilities and the reissuance of these audit opinions [3] - EY reported the exceeded time limitations to the FRC, indicating a proactive approach to compliance issues [4]

Core Insights - Grant Thornton Advisors is expanding its multinational platform by incorporating Grant Thornton New Zealand, enhancing its presence in the Asia Pacific region [1][4] - The expansion now covers 20 time zones, increasing the group's service capabilities for clients with global operations [1] - Grant Thornton New Zealand contributes over $40 million in annual revenue and adds more than 300 professionals to the platform [1][2] Company Expertise and Integration - The New Zealand team specializes in audit, tax, and advisory services, and has a strong market presence in the region [2] - The multinational platform was launched earlier this year, supported by an investor group led by New Mountain Capital, and integrates over a dozen firms from various regions [2][3] - Current members include firms from the US, Ireland, France, UAE, and others, with additional transactions expected to close soon [3] Leadership Statements - CEO Jim Peko emphasized the need for seamless service and consistent quality across different locations, highlighting the strategic importance of Grant Thornton New Zealand's inclusion [4] - Russell Moore, CEO of Grant Thornton New Zealand, expressed excitement about the partnership, noting the demand for smarter solutions and global connectivity in an evolving market [4] Network and Future Plans - The expanded platform will remain part of Grant Thornton International Limited, which includes member firms in over 150 markets globally [5] - The transaction for Grant Thornton New Zealand to join the platform is anticipated to close before the end of 2025 [4]

Core Insights - BDO USA has initiated layoffs and cost-cutting measures due to financial pressures from a $1.3 billion loan facility provided by Apollo Global Management, which is linked to an employee stock ownership plan [1][2][3] - The company reported a revenue of $2.89 billion for the fiscal year ending December 31, and is currently under scrutiny due to a proposed class action related to the ESOP [4][3] - BDO's financial management has faced challenges, particularly following the bankruptcy of First Brands Group, which has resulted in significant losses for investors [5] Financial Situation - BDO has incurred high-interest debt with an interest rate of approximately 9%, which was recently reduced by 100 basis points after a refinancing agreement [3] - The layoffs and suspension of non-essential travel are part of broader cost-reduction efforts to manage financial pressures [2] Operational Adjustments - Despite the financial challenges, BDO is reportedly maintaining a stable financial position and is evaluating its operations for efficiency [4] - The company has plans to hire over 1,300 individuals, including 30 principals from another professional services firm, indicating a potential strategy for growth despite current challenges [5]