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Big Four firm EY has reportedly resigned as auditor of supermarket giant Asda after one of its senior partners started a romantic relationship with billionaire chief executive Mohsin Issa, according to the Telegraph.
The report stated that EY had informed the grocer about its decision in June, but Asda did not make any announcement in Companies House filings or to MPs during recent questioning of the senior management team by the Business and Trade select committee.
Asda claimed that it had notified lenders of its listed bonds about the resignation in August.
EY also confirmed that the partner had resigned from the company a day after it quit as Asda’s auditor and that they had never carried out work related to the supermarket’s audit.
The accountancy firm told the Telegraph that the resignation was related to a restructuring of the Issa brothers’ businesses.
An EY spokesman told The Telegraph: “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.”
Both Asda and EY have been contacted for comment.
