Global professional services firm EY said it has decided to move forward with partner votes to separate into two distinct, multi-disciplinary organisations.
EY said in a statement that the decision was taken after a strategic review. This is expected to separate its consulting and audit operations in certain jurisdictions into two separate organisations. However, in India, a distinction between audit and non-audit practices already exists with statutory audits being performed by another entity, SRBC & Co LLP. The implications of the global decision for EY’s operations in India is still to be known.
“The next steps include ongoing engagement with partners to provide them with more information in advance of the voting process. We expect this phase to continue through the end of the year, with voting expected to begin on a country-by-country basis in late 2022 and conclude in early 2023,” said the statement.
The global split in the operations is expected to be a major event as the reorganisation could shake up the audit industry. In India, the separation between the statutory audit and the non-audit services rendered by an audit firm’s associates or network firms has been in the spotlight for some time with regulators insisting on such separation in letter and spirit.
EY said that, having carefully considered various options, it firmly believed that it can embrace the changing landscape, build businesses that redefine the future of professions, create exciting new opportunities, and deliver greater long-term value for EY people, clients and communities.
“EY is proud of its legacy as a leading global professional services organization. The world is changing, and we have to adapt to continue to thrive and achieve our full potential, while we address the needs of all of our stakeholders,” the statement said.
EY also said that it is looking forward to engaging with its clients, people, partners and stakeholders.
