Accounting firm EY has quit as auditor to Asda. It has also emerged that one of its senior partners began a romantic relationship with chief executive Mohsin Issa.
The Big Four firm informed Asda of its resignation back in July, however, the supermarket has not made any public announcement regarding EY’s exit in filings to Companies House or during senior management’s recent questioning by MPs, The Telegraph reported.
A source close to Asda said EY had confirmed there were no reasons behind the exit that should be highlighted to creditors or investors.
EY said the partner had resigned back in July and that she had never carried out work related to the supermarket’s audit.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
The accounting firm said the decision to quit as Asda’s auditor was related to a restructuring of the Issa brothers’ businesses.
Through lawyers, the EY partner claimed she had done no work for the supermarket and had adhered to all relevant policies.
She added that the accountancy firm had told her she had made all appropriate disclosures to the firm’s ethics and compliance teams during her career.
A EY spokesman said: “EY resigned as the auditors of Bellis Finco and Bellis Acquisition Company. As is required by the Companies Act, EY’s letters of resignation were sent to the companies on 27 July 2023.
“Following the acquisition of Euro Garages (Jersey) Ltd and the timetable requirements of the audit, we mutually agreed with the board to stand down as auditors for the group.”
An Asda spokesperson said: “In a letter last summer, EY confirmed that they would not be able to undertake the enlarged audit – taking into account the acquisition of the EG UK&I business and the significant increase in scale and complexity of the group within the timetable to issue their audit opinion for the year ended 31 Dec 2023. We notified investors about this on 8 August 2023.”
3 Comments. Leave new
It’s starting to get embarrassing. Asda has been in rapid decline since these two jokers took over. Anyone who seen the select committee fiasco knows the company has difficulty with the truth.
Think the EY Partner should be named – shouldn’t get another job. List of Partner resignations in July anyone?
What a total mess ASDA is depots are a total mess stores are even worse no staff yard area is worse than a council tip. Should have been taken over by Sainsbury’s. The two idiots and liars who have it now are in so much debt it’s embarrassing what a joke .