Ernst & Young

Ernst & Young, commonly known as EY, is a global leader in assurance, tax advisory, consulting, and strategy and transactions services. Operating as a limited liability partnership, the firm is one of the largest professional services networks in the world, alongside Deloitte, PricewaterhouseCoopers, and KPMG, collectively known as the "Big Four accounting firms." With its global headquarters in London, it serves a vast client base of public and private organizations across all industries.

History

The firm's origins trace back to separate founding partnerships in the late 19th and early 20th centuries. In Cleveland, Alwin C. Ernst founded Ernst & Ernst in 1903, while in Chicago, Arthur Young co-founded Arthur Young & Co. in 1906. These entities grew into major international accounting firms, Ernst & Whinney and Arthur Young & Co., respectively. In 1989, they merged to form the modern entity, a strategic response to client demands for global reach and intensified competition. Key milestones include the acquisition of management consulting firm Capgemini's consulting division in 2000, later sold to the same company, and the strategic rebranding to "EY" in 2013 to present a unified global identity.

Services

EY delivers a comprehensive suite of professional services organized around four primary service lines. Its **Assurance** services provide independent verification of financial information for stakeholders, encompassing financial audit, climate change and sustainability services, and forensic accounting. The **Tax** practice advises on complex domestic and international tax law, transfer pricing, and indirect tax matters for multinational corporations. **Consulting** offers advice on business transformation, leveraging expertise in technology consulting, risk management, and cybersecurity. Finally, **Strategy and Transactions** assists clients with capital strategy, mergers and acquisitions advisory, and corporate finance.

Global structure and operations

EY operates as a global network of member firms in over 150 countries, all united under the common brand and coordinated by EY Global. Each member firm, such as EY US and EY Japan, is a separate legal entity that adheres to shared policies and quality standards set by the global organization. The network is led by a Global Executive Committee, with the current Global Chairman and CEO being Carmine Di Sibio. In 2023, the firm proposed a radical restructuring plan named "Project Everest," which aimed to legally separate its audit and consulting businesses, but this plan was ultimately abandoned due to internal and external challenges.

Notable alumni

Many individuals who began their careers at the firm or its predecessor entities have achieved prominence in business and public service. In corporate leadership, alumni include Cathy Engelbert, the first Commissioner of the WNBA and former CEO of Deloitte US, and James S. Turley, former Chairman and CEO of Ernst & Young Global. In government and public policy, notable figures are Alexey Kudrin, former Finance Minister of Russia, and Mark Weinberger, former Assistant Secretary of the Treasury in the United States. The firm has also produced leaders in international institutions like Pascal Saint-Amans, former director of the Centre for Tax Policy and Administration at the OECD.

Controversies and legal issues

The firm has faced significant legal and regulatory scrutiny over its audit practices and professional conduct. A major case involved its role as auditor for the collapsed German payments company Wirecard, which led to investigations by German authorities and accusations of audit failure. In the United States, it paid a $100 million fine to the Securities and Exchange Commission in 2022 for ethics violations involving cheating on CPA ethics exams. Other notable issues include a substantial settlement related to its audits of the Kingdom of Denmark and ongoing litigation concerning its work for the failed London Capital & Finance. These incidents have fueled broader debates about auditor independence and the structure of the Big Four accounting firms.

Category:Professional services networks Category:Big Four accounting firms Category:Companies based in London Category:1989 establishments in the United Kingdom