Accounting firm EY has resigned as auditor to Asda. It has also emerged that one of its senior partners began a romantic relationship with Mohsin Issa.
Although the accountant told Asda of its decision back in July, the grocer has not made any public announcement regarding EY’s exit in filings to Companies House or in senior management’s recent questioning by MPs.
The supermarket claimed it had informed lenders about its listed bonds in August and a source close to Asda said the accounting firm had formally confirmed there were no reasons behind the exit that should be highlighted to creditors or investors.
EY confirmed the partner had resigned from the company and that she had never carried out work related to the supermarket’s audit.
Filings revealed she left as a partner the day after the firm stepped down as Asda’s auditor.
EY claimed the resignation was related to a restructuring of the Issa brothers’ businesses.
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Through lawyers, the EY partner claimed she had done no work for the supermarket and had adhered to all relevant policies.
She added that EY had told her she had made all appropriate disclosures to the firm’s ethics and compliance teams during her career.
A spokesman for EY 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.”
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