The auditing and consulting giant EY is working to divide the entire group – valid globally – reports Financial Times and refers to sources with knowledge of the plans.
Such a division would be the largest reorganization of one of the four major auditing and consulting companies in two decades, according to the newspaper.
Apparently, the proposal is still under discussion among the senior partners in EY.
It will be an attempt to avoid conflicts of interest that have characterized the industry and led to regulatory measures from both the British and American authorities. The big four, which also includes Deloitte, KPMG and PwC, have been criticized for an apparent lack of independence in their auditing business due to the fees they also charge for consulting services and tax and contract advice, according to the newspaper.
FT’s sources state that it may be relevant for EY to separate the audit part of the company.
EY has over 300,000 employees in more than 150 countries.
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