The probe concerns the issuance of “unauthorised” audit reports to unnamed companies. According to the FRC, the investigation targets the firm itself and two individual auditors. EY confirmed that it “self-reported” the breaches to the regulator, stating that it has since remediated the files and determined that no adjustments to the relevant financial statements were required.

Mounting Regulatory Pressure This latest inquiry adds to a growing backlog of regulatory challenges for EY. The firm is currently navigating four other active investigations, alongside legal battles and financial penalties, Financial Times reports.

The watchdog is already examining EY’s work regarding the Post Office scandal, collapsed retailer Made.com (2023), and two other unnamed entities.

The Big Four firm also faces a High Court lawsuit from the administrators of hospital operator NMC Health, who are seeking approximately £2 billion in damages for alleged negligence following the company’s 2020 collapse.

Additionally, EY has paid over £5mn in fines this year alone due to breaches involving the failed travel group Thomas Cook and listed company Stirling Water Seafield Finance.

The latest investigation is being conducted under FRC rules governing professional misconduct and public interest cases.

An EY spokesperson stated that it will “continue to fully co-operate” with the regulator.