Ernst & Young (EY) and two individuals are being investigated for due process failures that led to auditor reports being issued without proper authorisation, Britain's accounting watchdog said on Wednesday.
The reports were issued without proper approval from a senior statutory auditor, a spokesperson for the Financial Reporting Council said. The FRC did not identify the companies that had received the audits.
EY, one of the world's "Big Four" leading accounting and consulting networks, said it had informed the companies involved, checked the audit files and found that no financial adjustments or changes to audit opinions were required.
"We self-reported this matter to the FRC and will continue to fully co-operate with the investigation," EY said in a statement. Reporting by Kirstin Ridley and Muvija M, Editing by Paul Sandle, Jan Harvey, Peter Graff
