EY has suspended its plan to split into two independent firms amid a disagreement over how much of the accounting firm’s tax business should remain with the audit side of the firm.
On a call with partners on Wednesday, EY’s U.S. business lead Julie Boland said the split deal needed to be reworked.
EY’s U.S. business accounts for 40% of the firm’s $45B annual global revenue.
- In September, EY announced it would split its two main businesses — auditing and consulting — into two independent companies.
- The split is intended to avoid a conflict of interest between the auditing work and consulting work that EY does for some corporate clients.
- EY had planned to spin off its tax business with its consulting business and other advisory services from its audit business.
- The firm had planned to leave a small portion of its tax business with its auditing side.
