EY waves goodbye, no longer Asda’s financial eye

TLDR:

Big Four firm EY has resigned as auditor of UK supermarket giant Asda following reports of a romantic relationship between one of its senior partners and billionaire CEO Mohsin Issa.

Main Points:

• EY has reportedly resigned as the auditor of Asda after one of its senior partners began a romantic relationship with the supermarket’s CEO, Mohsin Issa.
• The resignation is believed to have taken place in August, with Asda claiming to have notified lenders of its listed bonds at the time. It is unclear when Asda plans to name a new auditor.
• There is growing scrutiny of the close relationships between auditors and their clients, with concerns raised about potential conflicts of interest and compromised independence.

Big Four firm EY has resigned as auditor of supermarket giant Asda following reports of a romantic relationship between one of its senior partners and billionaire CEO Mohsin Issa. EY is said to have resigned in August, prior to details of the relationship emerging. Asda claimed that it had notified lenders of its listed bonds about EY’s resignation at the time. It is unclear when Asda plans to name a new auditor. Recent accounting scandals have brought increased scrutiny to the close relationships between auditors and the businesses they audit, with concerns raised about potential conflicts of interest and compromised independence.