Unregistered |
18-09-2022 03:52 PM |
From FT
://.ft.com/content/6ca99d93-028d-4916-85f8-994f255d354c
EY’s break-up plan raises fears over audit business
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EY’s radical plan to break itself up risks stripping its audit business of the expertise needed to vet the complex accounts of the world’s largest multinationals, industry executives have warned.
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Some of EY’s competitors questioned whether a newly-separated audit firm could attract the tax and valuation experts needed to check the books of large companies because the top earners would want to remain in the advisory business where the financial rewards are higher.
“Anyone who sits there saying ‘you can have an audit-only firm with a few tax experts in it and that’s brilliant for audit quality’ [has] completely missed the point,” said a senior partner at another Big Four firm.
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But like competitors, EY is struggling to hire enough auditors to meet demand in several countries, with some blaming increased regulatory scrutiny and lower pay than at law firms or investment banks. As a result, EY’s newly independent audit business would have to rely on selling more advisory services to meet its growth targets, said a person familiar with the matter
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Any news from yellow on this? Nobody is concerned here?
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