© Reuters. Workplaces of Deloitte are seen in London, Britain, September 25, 2017. REUTERS/Hannah McKay/Recordsdata
(Reuters) – Deloitte, one of many “Huge 4” accounting companies, stated late on Wednesday that media stories concerning the firm exploring a plan to separate its international audit and consulting practices are “categorically unfaithful”.
The information of the break up, reported by the Wall Road Journal earlier within the day, got here a number of weeks after one other Huge 4 accounting agency Ernst & Younger stated it was evaluating strategic choices to enhance audit high quality.
“As said beforehand, we stay dedicated to our present enterprise mannequin,” a Deloitte spokesperson advised Reuters.
In line with the WSJ report, Deloitte reached out to funding bankers at Goldman Sachs Group Inc (NYSE:) and talks are nonetheless at a really early stage.
Goldman and JPMorgan Chase & Co (NYSE:) are advising Ernst & Younger on its attainable restructuring, the WSJ reported, citing folks aware of the matter.
KPMG, one other Huge 4 accounting agency, declined to touch upon its enterprise plans.
PricewaterhouseCoopers is “totally dedicated to our technique which we introduced final yr … haven’t any plans to alter course”, an organization spokesperson advised Reuters.
PricewaterhouseCoopers introduced a brand new international technique final yr, which included elevated funding to assist audit high quality.
For years, the 4 accounting giants have been beneath the regulatory scanner over worries that their advisory service choices may impair audit high quality and doubtlessly create conflicts of curiosity.
Final month, Britain set out reforms of huge firm audits, in response to suggestions from three government-sponsored opinions on enhancing auditing in a market dominated by the Huge 4.