EY reportedly working to split off its audit business

The Big Four accountancy firm - first reported by Michael West Media - is looking to spin off its audit business into a separate account. Under the plans being finalised, the audit group will retain the EY name and brand.

Responding to Michael West Media’s story, EY said: “We routinely evaluate strategic options that may further strengthen EY businesses over the long-term. Any significant changes would only happen in consultation with regulators and after votes by EY partners.

“We are in the early stages of this evaluation, and no decisions have been made.” 

In recent years the Big Four accountancy firms have come under growing scrutiny following a series of major scandals involving the collapse of some of the UK’s biggest companies including Carillion and BHS. 

In 2018 PwC was hit with a then-record fine of £10m, reduced to about £6.5m, for the audit it conducted on BHS ahead of its controversial sale. 

More recently KPMG was ordered to pay £14.4m by regulator the Financial Reporting Council, with the accountancy firm also receiving a “severe reprimand” over the “extremely serious” misconduct in relation to employees’ false representations to the watchdog.