Deloitte denies claims it is set to follow EY by splitting its business in two

Deloitte has said claims it is considering splitting itself up, and spinning off its consulting business, are “categorically untrue”.

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The Big Four accountancy firm denied claims it is mulling over a split, after the Wall Street Journal yesterday reported that Deloitte is exploring the options of separating out its global audit and consulting practices.

Instead, the firm said it remains “committed” to its “current business model,” as it said “reports we are exploring a plan to separate our organisation and categorically untrue”.

Also Read: UK’s Accounting Watchdog Criticizes ‘Big Four’ for Substandard Auditing Work

The reports come after reports emerged last month that Big Four accountancy firm EY is considering spinning off its advisory business, and floating it on the stock market, as a means escaping the conflicts-of-interests that have plagued the accountancy sector for years.

The Wall Street Journal said Deloitte reached out to investment bankers at Goldman Sachs after news broke of EY’s plans for a potential split.

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EY’s plans come as the Big Four come under mounting regulatory scrutiny to address their shortcomings, in the wake of a series of major accounting scandals, involving some of the UK’s biggest listed companies, including Carillion, Rolls Royce, and Patisserie Valerie.

The plan also comes after the UK government set out plans to push forwards with its reforms of the audit sector, by replacing its current watchdog with a more powerful body, and forcing the Big Four to share work with smaller, challenger firms.

This article was culled from cityam.com

 

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