FRC Investigates EY's Post Office Audits Amid Horizon IT Scandal

The UK's Financial Reporting Council (FRC) has initiated an investigation into EY's audits of Post Office Limited for the financial years 2015 to 2018, particularly focusing on the Horizon IT system linked to a major miscarriage of justice. Hundreds of sub-postmasters were wrongfully prosecuted for crimes like theft due to software errors, leading to severe personal consequences for many. EY has expressed its commitment to cooperate fully with the FRC during the investigation, emphasizing its responsibility to the public interest. The inquiry follows a significant public outcry and a dramatization of the scandal on television, prompting former Prime Minister Rishi Sunak to act on the wrongful convictions. Additionally, the FRC's decision comes after monitoring ongoing inquiries into the matter and reflects heightened public interest in the case. This investigation aims to determine the adequacy of EY's auditing practices while the broader IT issues are being examined through separate inquiries.