Ernst & Young

Ernst & Young
source
Name	Ernst & Young
Type	Multinational professional services network
Industry	Accounting
Founded	1989 (merger)
Headquarters	London, United Kingdom
Key people	Carmine Di Sibio
Revenue	See financial performance
Employees	See corporate structure and operations

Ernst & Young is a multinational professional services network providing assurance, advisory, tax, and transaction advisory services. The firm operates through a global network of member firms across markets such as United States, United Kingdom, Germany, Japan, and China, serving clients that include corporations listed on New York Stock Exchange, London Stock Exchange, Tokyo Stock Exchange, Hong Kong Stock Exchange, and Deutsche Börse. Its operations interact with regulatory bodies such as the Financial Reporting Council (United Kingdom), the Public Company Accounting Oversight Board, and the International Financial Reporting Standards foundations.

History

Founded through a succession of mergers that trace to practices in the 19th and 20th centuries, the network's modern formation followed the 1989 combination of firms with antecedents linked to names such as Arthur Young, Ernst & Whinney, Arthur Andersen, Coopers & Lybrand, and Price Waterhouse. Over the 1990s and 2000s the network expanded via alliances and member firm integrations across regions including Europe, North America, Asia-Pacific, and Latin America, interacting with institutions such as the Securities and Exchange Commission and participating in post-crisis regulatory responses after events like the Enron scandal and the investigations involving Lehman Brothers. Strategic leadership transitions involved figures who engaged with entities like the International Accounting Standards Board and the World Economic Forum, while corporate evolutions reflected trends seen at Deloitte, KPMG, and PwC.

Corporate structure and operations

The network is organized as a global federation of legally separate member firms operating under a coordinated brand with governance structures that reference models used by Big Four (auditing), Deloitte Touche Tohmatsu Limited, and PricewaterhouseCoopers. Executive leadership has worked with advisory bodies drawn from institutions such as the International Federation of Accountants, Organisation for Economic Co-operation and Development, and national regulators in Australia, Canada, and India. Operationally the network maintains sector teams and shared services aligned with market segments including clients listed on NASDAQ, Euronext, Shanghai Stock Exchange, and international project work tied to International Monetary Fund programmes. Human resources and talent pipelines are influenced by recruitment from universities like Harvard University, University of Oxford, University of Cambridge, Stanford University, and professional qualifications such as those from the Institute of Chartered Accountants in England and Wales and the American Institute of Certified Public Accountants.

Services and industries

Service lines include assurance and audit services that engage with accounting frameworks such as International Financial Reporting Standards and Generally Accepted Accounting Principles, tax and advisory offerings that interact with tax authorities like the Internal Revenue Service and HM Revenue and Customs, transaction advisory services involved in mergers and acquisitions with counterparties on markets such as NASDAQ and London Stock Exchange, and consulting work spanning digital transformation, cybersecurity, and risk management that intersects with vendors and standards bodies including Microsoft, SAP SE, Amazon Web Services, and the National Institute of Standards and Technology. Industry focus covers sectors like Banking, Insurance, Technology, Energy, Healthcare, Telecommunications, and Retail, with client cases involving corporations similar to JPMorgan Chase, Goldman Sachs, BP, Royal Dutch Shell, Pfizer, Apple Inc., Samsung, and Tesco.

Financial performance

Revenue and profitability have been reported annually with metrics comparable to peers such as Deloitte, KPMG, and PricewaterhouseCoopers. Global revenues have been driven by demand across regions including North America, Europe, and Asia-Pacific, with performance discussed in the context of capital markets like New York Stock Exchange and corporate finance activity involving advisors to transactions on NASDAQ and Hong Kong Stock Exchange. Financial outcomes are influenced by regulatory changes initiated by the Financial Stability Board and reporting standards set by the International Accounting Standards Board.

Controversies and legal issues

The network has been involved in regulatory inquiries and litigation that paralleled matters affecting firms such as Arthur Andersen and PwC, with cases engaging authorities like the Public Company Accounting Oversight Board, Securities and Exchange Commission, and national courts in jurisdictions including United States, United Kingdom, Australia, and India. Controversies have touched on audit quality, independence concerns, and advisory conflicts in high-profile corporate failures or investigations linked to entities comparable to Enron, Lehman Brothers, and other major corporate restructurings, and have prompted responses coordinated with bodies like the FRC and the OECD.

Corporate responsibility and sustainability

Corporate responsibility programmes align with international initiatives such as the United Nations Global Compact, Sustainable Development Goals, and climate frameworks tied to the Paris Agreement and the Task Force on Climate-related Financial Disclosures. Sustainability reporting, pro bono services, and diversity efforts reference partnerships with organizations like World Economic Forum, UNICEF, Amnesty International, Business for Social Responsibility, and academic collaboration with institutions such as London School of Economics and Columbia University.

Category:Accounting firms