What’s up with EY audit? I’ve seen some news articles of voluntary attrition/ letting go of audit clients. Wondering why this was done and if it will affect the non audit service lines like tax, deals/FDD, consulting, etc. (Someone please refer me to another post if already discussed)

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COVID staff + outsourcing. You get what you pay for.

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“The move came after the Public Company Accounting Oversight Board found the rate of EY’s auditing deficiencies, based on a sampling of audits of 2021 financial statements, surged to 46% from 21% in the previous year. It was the highest deficiency rate among the Big Four in the U.S.”

https://www.wsj.com/articles/ey-sheds-u-s-audit-clients-in-response-to-shortfalls-2ba1172e

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Outsourcing will help!

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One of the “major” clients included that was named is Nikola… look at that company and tell me your firm would bid on that job and slap their name on it. Were getting rid of high risk or unprofitable engagements that we should have never picked up to begin with

Makes sense. Thank you for the reply!

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