EY ditches split plan after opposition from US unit
EY has ditched its plan to split its audit and consulting businesses following opposition from its US unit.
The firm’s global executive committee relayed the decision to partners in a note today.
The Big Four firm had put its plan to separate its audit division from its consulting business, dubbed ‘Project Everest’, on hold following infighting over the future of the accounting firm’s tax division.
“We have been informed that the US Executive Committee has decided not to move forward with the design of Project Everest. Given the strategic importance of the US member firm to Project Everest, we are stopping work on the project,” the committee said, according to a copy of the note provided to City PM by an EY spokesperson.
The decision to scrap the plan was was first reported by the Financial Times.
However, the committee said it was still committed to the idea of breaking up the businesses in the future.
“The global executive remains committed to moving forward with creating two world-class organisations that further advance audit quality, independence and client choice,” they wrote.
EY operates as a global network of member firms and the plan had to be passed on a country-by-country basis.