Shell plc announced that PricewaterhouseCoopers (PwC) will replace Ernst & Young (EY) as its external auditor, with the transition taking effect for the financial year ending December 31 2027. The change follows a competitive audit tender that began in Q4 2025 and was decided by the board after a thorough review of independence, team composition, and regulatory compliance.
The appointment comes in the wake of a UK Financial Reporting Council investigation into EY’s audit of Shell’s 2024 financial statements. The investigation was triggered by evidence that EY had breached audit partner rotation rules, which require lead partners to rotate every five to seven years. Shell disclosed the breach in a July regulatory filing and has since maintained that EY issued unqualified audit reports for the past two years with no disagreements.
EY will continue as auditor for the 2026 financial year, but that role is also subject to shareholder approval at the 2026 Annual General Meeting. The board’s decision to move to PwC is framed as a routine governance step, but the regulatory context underscores the importance of audit independence and compliance.
The transition to PwC is expected to maintain audit quality and governance continuity. Shell’s Audit and Risk Committee emphasized that the new auditor will bring a strong track record in energy sector audits and will support the company’s ongoing focus on transparency and regulatory compliance. The change is likely to reassure investors and regulators that Shell is proactively addressing audit independence concerns.
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