Which Side of an EY Breakup Do You Want to Be On?: Chris Hughes

A possible split of EY into separate audit and consulting firms must confront the problem faced by all breakups: How do you create attractive businesses out of both when one is likely to be seen as inferior? Here, that would be the newly established standalone auditor. EY — or any Big Four accounting firm that attempts such a separation — has its work cut out to make pure-play audit a success.

The revelation by Michael West Media that EY is considering the move heralds a potentially seismic shift for the industry. A succession of accounting scandals has long prompted attacks on the Big ...