- Shell plc (SHEL, Financial) to file amended Form 20-Fs for 2023 and 2024 due to EY's non-compliance with SEC rules.
- Financial statements for the years remain unchanged; EY's audit opinions still unqualified.
- EY assigns a new lead audit partner to resolve the issue; no amended filings needed in the UK.
Shell plc (SHEL) announced plans to amend its 2023 and 2024 Form 20-F filings following a disclosure by Ernst & Young LLP (EY) of non-compliance with the U.S. Securities and Exchange Commission's (SEC) auditor independence rules. The issue arose when it was revealed that EY's lead audit partner exceeded the permissible period under the SEC's audit partner rotation rules for those years.
Despite this compliance issue, Shell confirmed that no changes to its previously issued financial statements for 2023 and 2024 are necessary. The financial statements remain unchanged, and EY's audit opinions are still unqualified. A new lead audit partner has been appointed by EY, and Shell will submit the amended Form 20-Fs on July 2, 2025.
Additionally, EY informed Shell that similar partner rotation time limitations were exceeded under the UK Financial Reporting Council's Revised Ethical Standard. However, no amendments are needed for UK filings, as the matter will be resolved between EY and the UK Financial Reporting Council. This procedural matter is expected to have minimal impact on Shell's financial position or investor confidence.
