Tighter ethics regulations are holding back the growth of Ernst & Young’s lucrative consulting business, a key reason firm leaders are considering whether to separate its global audit and advisory practices. The global accounting network is now discussing whether to spin off its global auditing business.
Jenny Chu, Associate Professor in Accounting at Cambridge Judge Business School, described the move as a watershed moment. “We need to wait and see,” she said. “The devil will be in the details on how the partners in the newly spun off audit firm may or may not retain financial interests in the consulting firm.”
Read the full article [bloombergtax.com]