Global services company EY announced that it has decided to pursue a partnership to split into two separate multidisciplinary organizations.
EY said in a statement that the decision was taken after a strategic review. This is expected to split its advisory and auditing activities into two separate bodies in certain jurisdictions. However, in India there is already a distinction between audited and unaudited practices as statutory audits are conducted by a separate organization, SRBC & Co LLP. The impact of the global decision on EY operations in India is not yet known.
A global split of the business is expected to be a major event as restructuring could shake the accounting industry. In India, the separation of statutory audit and non-audit services provided by affiliates or network companies of audit firms has been in the spotlight for some time as regulators insist on such separation in word and spirit. After carefully evaluating various options, EY is embracing a changing environment and building a company that redefines the future of employment, creating exciting new opportunities and greater long-term value for EY employees and clients.
