Professional services firm EY, one of the four major firms in the sector, known as the ‘Big Four’, is considering splitting its business to separate audit and consulting segments, US economic newspaper ‘The Wall Street’ reported on Tuesday. Journal’.
The idea of separating businesses has not yet been adopted and there are still pending considerations, such as in which companies tax or transaction strategies and services will be unified.
EY collected 39,959 million dollars (37,218 million euros) in the fiscal year ending June 2021, which was an increase of 7.3% from the previous year. Of that figure, the audit division charged 13,567 million (12,636 million euros), 5.8% more; while the consulting branch recorded revenues of 11,135 million (10,371 million euros), 6.4% more.
By 2020, the UK has made it mandatory for the ‘Big Four’ to separate their audit division from the rest of their business with the aim of improving the quality and effectiveness of audits and corporate reporting.
However, no timeline is planned for this new EY organization if it comes to fruition. According to American newspapers, any movement of this type requires the approval of the company’s partners, who are not listed on the Stock Exchange.
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