Global professional services firm EY said on Thursday that it has decided to proceed with partner votes to separate into two separate, multi-disciplinary organizations.
EY said in a statement that the decision was taken after a strategic review. It is expected to separate its consulting and audit functions into two separate organizations in some jurisdictions. However, in India, a distinction already exists between audit and non-audit practices, while the statutory audit is being conducted by another entity, SRBC & Co LLP. The implications of the global decision for the conduct of EY in India are still known.
“Next phases include ongoing engagement with partners to provide them with more information prior to the voting process. We expect this phase to continue through the end of the year, on a country-by-country basis at the end of 2022 Voting is expected to begin and end in early 2023,” the statement said.
The global split in operations is expected to be a major event as the restructuring could shake up the audit industry. In India, the separation between statutory audit and non-audit services provided by an audit firm’s affiliates or network firms has been in the news for some time, when regulators have insisted on such separation in letter and spirit. .
EY said that, after carefully considering various options, it strongly believes that it can adapt to the changing landscape, creating businesses that redefine the future of businesses, exciting new opportunities Creates, and delivers greater long-term value to EY people, customers and communities.
“EY is proud of its legacy as a leading global professional services organization. The world is changing, and we must adapt to grow and achieve our full potential while meeting the needs of all our stakeholders,” the statement said.
EY also said that it looks forward to engaging with its customers, people, partners and stakeholders.
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