Due to EY non-compliance with audit partner rotation rules, Shell to update 2023 and 2024 Form 20-Fs; financial statements remain unchanged
Shell plc (NYSE: SHEL) announced it will file amendments to its 2023 and 2024 Form 20-Fs due to Ernst & Young LLP's (EY) non-compliance with SEC auditor independence rules. The issue arose when EY disclosed that its lead audit partner had exceeded the allowed period under SEC audit partner rotation rules for these years.
Despite this compliance issue, Shell emphasized that no changes are required to the previously issued financial statements for 2023 and 2024. EY has assigned a new lead audit partner and will issue new US audit opinions, which remain unqualified. The company will file the amended Form 20-Fs with the SEC on July 2, 2025.
Additionally, EY informed that time limitations under the UK Financial Reporting Council's Revised Ethical Standard regarding partner rotation had also been exceeded. However, no amended filings are required in the UK, and this matter will be handled between EY and the UK Financial Reporting Council.
Shell plc (NYSE: SHEL) ha annunciato che presenterà emendamenti ai suoi moduli 20-F per il 2023 e il 2024 a causa della non conformità di Ernst & Young LLP (EY) alle norme della SEC sull'indipendenza degli auditor. Il problema è emerso quando EY ha rivelato che il suo partner principale di revisione ha superato il periodo consentito dalle regole di rotazione dei partner di revisione della SEC per questi anni.
Nonostante questa questione di conformità, Shell ha sottolineato che non sono necessarie modifiche ai bilanci già pubblicati per il 2023 e il 2024. EY ha nominato un nuovo partner principale di revisione e emetterà nuove opinioni di revisione statunitensi, che rimangono senza rilievi. La società presenterà i moduli 20-F emendati alla SEC il 2 luglio 2025.
Inoltre, EY ha comunicato che sono stati superati anche i limiti temporali previsti dal Revised Ethical Standard del Financial Reporting Council del Regno Unito riguardo alla rotazione dei partner. Tuttavia, non sono richieste modifiche ai documenti nel Regno Unito e la questione sarà gestita tra EY e il Financial Reporting Council britannico.
Shell plc (NYSE: SHEL) anunció que presentará enmiendas a sus formularios 20-F de 2023 y 2024 debido al incumplimiento de Ernst & Young LLP (EY) con las normas de independencia de auditores de la SEC. El problema surgió cuando EY reveló que su socio auditor principal había superado el período permitido bajo las reglas de rotación de socios auditores de la SEC para esos años.
A pesar de este problema de cumplimiento, Shell enfatizó que no se requieren cambios en los estados financieros previamente emitidos para 2023 y 2024. EY ha asignado un nuevo socio auditor principal y emitirá nuevas opiniones de auditoría de EE.UU., que siguen siendo sin salvedades. La compañía presentará los formularios 20-F enmendados ante la SEC el 2 de julio de 2025.
Además, EY informó que también se han superado los límites de tiempo bajo el Estándar Ético Revisado del Financial Reporting Council del Reino Unido en relación con la rotación de socios. Sin embargo, no se requieren presentaciones enmendadas en el Reino Unido y este asunto será gestionado entre EY y el Financial Reporting Council del Reino Unido.
Shell plc (NYSE: SHEL)는 Ernst & Young LLP(EY)가 SEC 감사 독립성 규정을 준수하지 않아 2023년 및 2024년 Form 20-F 수정서를 제출할 것이라고 발표했습니다. 이 문제는 EY가 해당 연도에 대해 SEC 감사 파트너 교체 규정에서 허용된 기간을 초과한 주 감사 파트너를 공개하면서 발생했습니다.
이 준수 문제에도 불구하고 Shell은 2023년 및 2024년에 이미 발행된 재무제표에는 변경이 필요하지 않다고 강조했습니다. EY는 새로운 주 감사 파트너를 지정했으며, 무조건적 의견을 유지하는 새로운 미국 감사 의견을 발행할 예정입니다. 회사는 2025년 7월 2일에 수정된 Form 20-F를 SEC에 제출할 예정입니다.
또한 EY는 영국 금융보고위원회(Financial Reporting Council)의 개정 윤리 기준에 따른 파트너 교체 시간 제한도 초과했다고 알렸습니다. 그러나 영국에서는 수정 제출이 필요하지 않으며, 이 문제는 EY와 영국 금융보고위원회 간에 처리될 예정입니다.
Shell plc (NYSE : SHEL) a annoncé qu'elle déposerait des amendements à ses formulaires 20-F pour 2023 et 2024 en raison de la non-conformité d'Ernst & Young LLP (EY) aux règles d'indépendance des auditeurs de la SEC. Le problème est survenu lorsque EY a révélé que son associé principal chargé de l'audit avait dépassé la période autorisée selon les règles de rotation des partenaires d'audit de la SEC pour ces années.
Malgré ce problème de conformité, Shell a souligné qu'aucune modification n'est nécessaire aux états financiers précédemment publiés pour 2023 et 2024. EY a désigné un nouvel associé principal d'audit et émettra de nouvelles opinions d'audit américaines, qui restent sans réserve. La société déposera les formulaires 20-F amendés auprès de la SEC le 2 juillet 2025.
De plus, EY a informé que les limites de temps prévues par la norme éthique révisée du Financial Reporting Council du Royaume-Uni concernant la rotation des partenaires avaient également été dépassées. Cependant, aucun dépôt amendé n'est requis au Royaume-Uni, et cette question sera gérée entre EY et le Financial Reporting Council britannique.
Shell plc (NYSE: SHEL) gab bekannt, dass es Änderungen an seinen 20-F Formularen für 2023 und 2024 einreichen wird, aufgrund der Nichteinhaltung der SEC-Anforderungen zur Unabhängigkeit von Wirtschaftsprüfern durch Ernst & Young LLP (EY). Das Problem entstand, als EY offenlegte, dass der leitende Prüfungspartner für diese Jahre die zulässige Frist gemäß den SEC-Rotationsregeln für Prüfungspartner überschritten hatte.
Trotz dieses Compliance-Problems betonte Shell, dass keine Änderungen an den bereits veröffentlichten Finanzberichten für 2023 und 2024 erforderlich sind. EY hat einen neuen leitenden Prüfungspartner benannt und wird neue US-Prüfungsurteile abgeben, die weiterhin uneingeschränkt sind. Das Unternehmen wird die geänderten 20-F Formulare am 2. Juli 2025 bei der SEC einreichen.
Darüber hinaus informierte EY, dass auch die zeitlichen Begrenzungen gemäß dem überarbeiteten Ethikstandard des britischen Financial Reporting Council bezüglich der Partnerrotation überschritten wurden. Für Großbritannien sind jedoch keine geänderten Einreichungen erforderlich, und diese Angelegenheit wird zwischen EY und dem britischen Financial Reporting Council geregelt.
- Financial statements for 2023 and 2024 remain unchanged and valid
- EY audit opinions remain unqualified
- Swift remediation with new lead audit partner assigned
- No amended filings required in the UK market
- EY's non-compliance with SEC auditor independence rules requires Form 20-F amendments
- Lead audit partner exceeded allowed period under SEC rotation rules
- EY also exceeded UK Financial Reporting Council's time limitations for partner rotation
Insights
Shell filing amended reports due to auditor partner rotation rule violation. No financial impact as statements remain unchanged with unqualified opinions.
Shell is filing amended Form 20-Fs for 2023 and 2024 after Ernst & Young (EY) informed them of non-compliance with SEC auditor independence rules. This is a procedural issue rather than a financial one - the lead audit partner exceeded the maximum permitted service period under SEC's partner rotation requirements.
The good news for investors: Shell's financial statements remain completely unchanged and EY's audit opinions remain unqualified (meaning they still approve the financial statements without reservation). EY has already remediated the situation by assigning a different partner to serve as lead auditor and has concluded they can exercise objective judgment on the financials.
This type of technical compliance issue is relatively minor in the spectrum of potential audit concerns. The partner rotation rules exist to ensure fresh perspectives and maintain auditor independence, but the violation doesn't suggest any actual reporting problems. No financial restatements are needed, and no regulatory penalties are mentioned.
Similar rotation rules were also exceeded under UK standards, but no amended filings are required there. This situation represents a procedural hiccup that requires paperwork but poses minimal material impact to Shell's financial position, operations, or investor confidence in their reported results.
Due to EY non-compliance with audit partner rotation rules, Shell to update 2023 and 2024 Form 20-Fs; financial statements remain unchanged
London, July 2, 2025 – Ernst & Young LLP ("EY") has advised Shell plc that, for the years ended December 31, 2023 and 2024, EY was not in compliance with the SEC auditor independence rules. As a result, Shell plc will today file an amendment to its filed Form 20-Fs for those years with new US audit opinions issued by EY. The financial statements for 2023 and 2024 remain unchanged. The EY audit opinions remain unqualified.
Additional notes
On July 1, 2025, EY, Shell plc’s independent registered public accounting firm, advised the Audit and Risk Committee of the Board that its US opinions on Shell plc’s previously issued audited consolidated financial statements and effectiveness of internal control over financial reporting (jointly the “previously issued financial statements”) for the years ended and as of December 31, 2023 and 2024 (the “applicable years”), respectively, should no longer be relied upon. After a review, EY concluded that it was not in compliance with the SEC’s auditor independence rules for the audits of the applicable years.
EY has determined that the partner who led the audit for the applicable years had exceeded the period allowed under SEC audit partner rotation rules and hence was not eligible to serve as lead engagement partner for those audits.
EY subsequently assigned a different partner to perform the role of lead audit partner with respect to the audits and concluded that no changes to the previously issued financial statements for the applicable years are necessary. EY has also concluded that the appropriate remediation has been completed, and it is capable of exercising objective and impartial judgment with respect to the US audit opinions included in the amended Form 20-Fs for the applicable years to be filed with the SEC.
The previously issued financial statements as prepared by Shell plc for the applicable years are unchanged. Shell plc will file amended Form 20-Fs for the applicable years later today.
Notes to editors
- SEC refers to the US Securities and Exchange Commission.
- To reflect the new issuance date of the Consolidated Financial Statements, consequential updates were included with respect to the going concern period and the Post balance sheet events note to the Consolidated Financial Statements. Save for these items, the previously issued financial statements and other notes have not changed. The EY audit opinions remain unqualified.
- EY also advised the Audit and Risk Committee of the Board that the time limitations under the UK Financial Reporting Council’s Revised Ethical Standard regarding rotation of partners had been exceeded. Follow-up is a matter between EY and the UK Financial Reporting Council. No amended filings are required in the UK.
- Ernst & Young LLP is the UK member firm of the EY network.
Enquiries
Shell Media Relations International: +44 20 7934 5550
US Media Relations: Contact Shell US Media Team
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Additional regulated information required to be disclosed under the laws of the United Kingdom
FAQ
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