EY is exploring a global restructuring that could see it spin off the audit division from its advisory business.
The Big Four accountant confirmed last night it was in the “early stages” of separating the audit business from its higher-margin consultancy arm. “We routinely evaluate strategic options that may further strengthen EY businesses over the long term,” it said. “We are in the early stages of this evaluation and no decisions have been made.”
Such a move would represent a far bigger change than the “operational separation” of audit and advisory functions that the Big Four have agreed to in the UK.
Britain’s auditors have been under intense scrutiny following the collapse of the department store BHS and Carillion, the construction group.
EY employs more than 300,000 people in 150 countries and provides consulting, audit, tax and advisory services. Last year the global business generated revenues of $40bn.
