So from EY’s perspective, what are the benefits of the split besides partners getting a big one time payout?

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Posting as :
works at
You are currently posting as works at

No independence issues for the consulting groups who want to work with audit clients

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Lmao yeah really sketchy stuff

Just the one you’ve listed really.

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Is it still gonna be a big 4 moving forward? I’d imagine a good portion of their revenue comes from consulting.

PWC likely not
We already reorged to make a less strict but pseudo divide from compliance and assurance services / apart from all tax consulting and advisory

More Tech consulting revenue

Where is tax going to end up? With consulting?

Other than law PCS and maybe a few other groups which would go to newco, all other tax groups would need to be split between the 2 firms

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By splitting off the services that must be performed by a registered CPA firm the reminding entity has many more options regarding structure and service lines. Could even go public if it wanted.

I guess it makes sense that it benefits the consulting side. I feel like this is not a good move for the audit business? The profit margin are never that high for audit engagements, and also how are the audits going to pull in specialists now ? I’m in tax and we’d also use consulting folks for technical areas when we audit.

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