EY Faces UK Watchdog Scrutiny Over Post Office Audits

The UK’s accounting watchdog confirmed Friday that it is scrutinizing audits that fell outside the scope of the public inquiry into the Post Office Horizon scandal, which saw hundreds of sub-postmasters wrongly prosecuted and sometimes jailed between 1999 and 2015 because faulty accounting software suggested they had stolen money.

The Financial Reporting Council said in an emailed statement that it is looking at the work of Ernst & Young, which was the Post Office’s auditor from 1986 to 2018, when PwC took over. The FRC didn’t say whether it was looking at PwC as well. EY and PwC declined ...