Originally Posted by Unregistered

://.afr.com/companies/professional-services/ey-may-spin-off-auditing-arm-20220527-p5aoyo

Global consulting powerhouse EY is considering splitting off its audit arm, amid increasing regulatory concerns about the conflict that has risen from the firm and its big four rivals providing non-audit work to auditing clients.

A string of audit-related failures across the world have triggered the regulatory crackdown, including the collapse of EY clients Wirecard and Luckin Coffee and KPMG UK audit client Carillion.
...

Wirecard, a German payment processor, filed for insolvency in 2020 after admitting that €1.9 billion ($3 billion) of cash on its books probably never existed. Luckin Coffee filed for bankruptcy this month amid allegations the company’s executives inflated income, costs and expenses for 2019.

The scandals have badly hurt EY’s ability to win work in Europe and China, according to rivals. In a partner briefing last year, Deloitte Global chief executive Punit Renjen said EY’s Wirecard issues would “haunt them, certainly in Europe” and that EY was “persona non grata in terms of audit in the Chinese market because of Luckin Coffee and Wirecard”.


Any news on this. Why yellow so jialat. Spinoff audit then how? Still will have Big4 "prestige" anot?