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Pressure prompts EY to consider closing its audit and advisory businesses

Ernst & Young (EY) has sent a statement to its employees in which, according to Reuters, it says it is…

By admin , in news , at May 27, 2022

Ernst & Young (EY) has sent a statement to its employees in which, according to Reuters, it says it is evaluating strategic choiceHowever, no decision has been taken. It’s about reassuring your employees in the event of a potential spin-off of their business areas.

alarm in big choke (Deloitte, EY, PwC and KPMG) have jumped on this futuristic move. The accounting industry has been criticized for its lack of independence in auditing accounts. they accuse them Benefit auditors and that leaves investors vulnerable to the conditions provided for the services.

Arthur Andersen

What EY intends to do is to separate its operations from audit You Advisor, something that would mean a major restructuring in a very powerful sector that was already facing a major crisis with the bankruptcy of 20 years ago enron You Arthur Andersen,

United Kingdom You America He expects auditors to present reform plans in 2024 to avoid forced spin-offs of their businesses.

The aim is to prevent these companies from being both auditors and consultants in larger companies. conflict of interests What does this mean for annual accounts? it was in spain luis de guindoso The service that determines the extent of services an auditor can provide for the same company as an advisor.

The shaking of one of the great gears of the world economy that two new sectors of the same company have to Go up Something by contracts that would reduce the high rates of these types of services.

Pressure prompts EY to consider closing its audit and advisory businesses

2022-05-27 09:34:27