Editing Ernst & Young

{{Short description|Multinational professional services network}}
{{Use dmy dates|date=March 2020}}
{{Infobox company
| name = Ernst & Young Global Limited
| trade_name = EY
| logo = EY logo 2019.svg
| logo_size = 135px
| type = [[Private company limited by guarantee]]<ref name="gov.uk">{{cite web |url=https://beta.companieshouse.gov.uk/company/04328808 |title=Ernst & Young Global Limited |work=Companies House |access-date=2020-07-23}}</ref>
| predecessor = {{Ubl | Ernst & Whinney | Arthur Young & Co.}}
| foundation = {{start date and age|1989}} (through merger of Ernst & Whinney and Arthur Young & Co.; oldest component from 1849)<ref name="facts">{{cite web|url=http://www.ey.com/UK/en/Newsroom/Facts-and-figures |title=Facts & Figures |publisher= Ernst & Young |date=30 June 2011 |access-date=8 December 2011}}</ref>
| location = [[London]], England
| area_served = Worldwide
| key_people = {{br list | [[Janet Truncale]] | (Global [[Chairperson|chair]], [[Chief Executive Officer|CEO]]) Effective July 1, 2024}}<ref>{{cite web|url=https://www.ey.com/en_gl/news/2023/11/janet-truncale-selected-as-next-ey-global-chair-and-ceo-effective-july-1-2024 |title=Janet Truncale selected as next EY Global Chair and CEO; effective July 1, 2024|publisher=EY|date=15 November 2023|access-date=16 November 2023}}</ref>
| industry = [[Professional services]]
| services = {{plainlist|1=
* [[Assurance services|Assurance]]
* [[Tax|Tax advisory]]
* [[Digital Transformation]]
* [[Information Technology]]
* [[Cybersecurity]]
* [[Artificial Intelligence]]
* [[EY-Parthenon|Strategy consulting]]
* [[Financial adviser|Financial advisory]]
* [[Legal]]
}}
| divisions = {{plainlist|1=
* Assurance
* Consulting
* Strategy and Transactions
* Tax
* EY Private}}
| subsid = [[EY-Parthenon]]
| revenue = {{Increase}} {{USD}}49.4&nbsp;billion (2023)<ref>{{cite web |last1=Lloyd |first1=Rachel |title=EY reports record global revenue results of just under US$50b
|url=https://www.ey.com/en_gl/news/2023/09/ey-reports-record-global-revenue-results-of-just-under-us-50b |website=EY |publisher=Ernst & Young Global Limited |access-date=13 September 2023}}</ref>
| num_employees = 395,442 (2023)<ref name="headcount_2023">{{cite web|url=https://www.ey.com/en_gl/news/2023/09/ey-reports-record-global-revenue-results-of-just-under-us-50b|title=EY reports record global revenue results of just under US$50b|date=13 September 2023|website=ey.com|access-date=13 September 2023}}</ref>
| homepage = {{URL|https://www.ey.com/|ey.com}}
}}

'''EY<ref name="rebranding" /><ref name="rebranding2" />''' previously known as '''Ernst & Young''' is a [[multinational corporation|multinational]] [[professional services]] [[partnership|network]] based in [[London]], United Kingdom.<ref name=":0">{{Cite web |title=Legal statement |url=https://www.ey.com/sv_se/legal-and-privacy/legal-statement |access-date=2025-03-19 |website=www.ey.com |language=}}</ref> Along with [[Deloitte]], [[KPMG]] and [[PwC]], it is one of the [[Big Four accounting firms|Big Four]] accounting firms. The EY network is composed of member firms of '''Ernst & Young Global Limited''', a UK company [[Company limited by guarantee|limited by guarantee]].<ref name=":0" />

EY is one of the largest [[professional services network]]s in the world.<ref>{{cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=97518|title=Professional Services Company Overview of Ernst & Young LLP|website=bloomberg.com|access-date=2019-04-12}}</ref> It primarily provides [[assurance services|assurance]], [[tax]], [[Information technology|information technology services]] (including [[managed services]] in areas like [[Cybersecurity]], [[Cloud computing|Cloud]], [[Digital transformation|Digital Transformation]] and [[Artificial intelligence|AI]]), [[management consulting|consulting]], and [[Corporate services|advisory]] services to its clients.<ref>{{cite web|url=http://www.ey.com/UK/en/Newsroom/Facts-and-figures|title=EY at a glance|publisher=EY|access-date=2013-07-03}}</ref>

Ernst & Young Global Limited operates as a network of member firms which are structured as separate legal entities in a partnership, which has 395,442 employees in over 700 offices in more than 150 countries.<ref name="headcount_2023">{{cite web|url=https://www.ey.com/en_gl/news/2023/09/ey-reports-record-global-revenue-results-of-just-under-us-50b|title=EY reports record global revenue results of just under US$50b|date=13 September 2023|website=ey.com|access-date=13 September 2023}}</ref> The firm's current partnership was formed in 1989 by a merger of two accounting firms: Ernst & Whinney and Arthur Young & Co.<ref>{{cite web |title=A timeline of our history |url=http://www.ey.com/gl/en/about-us/our-people-and-culture/our-history/about-ey---key-facts-and-figures---history---timeline |access-date=2016-09-24 |publisher=EY |archive-url=https://web.archive.org/web/20160927092457/http://www.ey.com/gl/en/about-us/our-people-and-culture/our-history/about-ey---key-facts-and-figures---history---timeline |archive-date=27 September 2016 |url-status=dead |df=dmy-all }}</ref> It was named Ernst & Young until a rebranding campaign officially changed its name to EY in 2013,<ref>{{cite news|url=http://www.irishtimes.com/business/sectors/financial-services/ernst-young-re-brands-1.1449229|title=Ernst & Young re-brands|last=Reddan|first=Fiona|date=2013-07-01|newspaper=[[The Irish Times]]|access-date=2013-07-03|url-status=dead|archive-url=https://archive.today/20130702220058/http://www.irishtimes.com/business/sectors/financial-services/ernst-young-re-brands-1.1449229|archive-date=2 July 2013}}</ref> although this initialism was already used informally prior to its sanctioning adoption.

In 2023, EY was the seventh-largest [[Privately held company|privately owned organization]] in the United States,<ref>{{cite news|url=https://www.valuewalk.com/top-10-largest-private-companies-revenue/|title=Top Ten Largest Private Companies in the World|date=25 April 2023|work=Forbes|access-date=8 February 2024}}</ref> and EY has for 25 years been continuously ranked on [[Fortune (magazine)|''Fortune'']] magazine's list of the [[100 Best Companies to Work For]], longer than any other accounting firm.<ref>{{cite web|url=https://fortune.com/best-companies/2019/ernst-young/|title=Fortune Magazine 2019 100 Best Companies to Work For|work=[[Fortune (magazine)|Fortune]]|access-date=12 December 2019|archive-date=8 April 2022|archive-url=https://web.archive.org/web/20220408182711/https://fortune.com/best-companies/2019/ernst-young/|url-status=dead}}</ref> The firm has, however, repeatedly come under scrutiny for systemic issues in their training, hiring, and work culture.

== History ==
=== Early history and mergers ===
EY resulted from several mergers of ancestor firms over the last century and a half, the oldest of which was founded in 1849, in England, as Harding & Pullein. That same year, this firm was joined by an accountant named Frederick Whinney, who, a decade later, became a partner. After his son joined the firm, it was later renamed Whinney, Smith & Whinney, in 1894.<ref name="history">[http://www.ey.com/GL/en/About-us/Our-history "Ernst & Young – History"]{{webarchive|url=https://web.archive.org/web/20090715172635/http://www.ey.com/GL/en/About-us/Our-history|date=15 July 2009}}. Ernst & Young. Retrieved 9 July 2011.</ref>

In 1903, the firm '''Ernst & Ernst''' was founded in Cleveland, Ohio, by [[Alwin C. Ernst]], and his brother, Theodore Ernst. In 1906, '''Arthur Young & Co.''' was set up by a Scottish accountant, [[Arthur Young (accountant)|Arthur Young]], in Chicago. Starting in 1924, these two American firms became allied with prominent British firms; Young with Broads Paterson & Co.; and Ernst with the aforementioned Whinney Smith & Whinney. The latter of these two mergers spawned Anglo-American partnership '''Ernst & Whinney''' in 1979, then the fourth largest accountancy firm in the world.<ref name="history" />

A decade later, in 1989, Ernst & Whinney merged with the fifth largest firm globally at the time, Arthur Young & Co., to create '''Ernst & Young'''.<ref>[https://query.nytimes.com/gst/fullpage.html?res=950DE2DE1E38F93BA25756C0A96F948260 "Reports Say Arthur Young and Ernst May Merge"]. ''[[The New York Times]]''. May 1989.</ref>

=== Later developments ===
[[File:Ernst&young logo.svg|thumb|Ernst & Young logo, 1990–2012]]
In October 1997, Ernst & Young announced plans to merge its global practices with professional services network [[KPMG]], to create the largest professional services organization in the world. The announcement came on the heels of an announced merger between [[Price Waterhouse]] and [[Coopers & Lybrand]] only a month earlier. These plans were soon abandoned in February 1998, due to several factors ranging from client opposition, antitrust issues, cost problems, and the anticipated difficulty of merging the two diverse firms and cultures.<ref>[http://news.bbc.co.uk/1/hi/business/56509.stm "Accountancy Merger Off"]. [[BBC News]]. 23 February 1998. Retrieved 9 July 2011.</ref> The merger between Price Waterhouse and Coopers & Lybrand, however, went ahead as planned, creating [[PwC]].<ref>{{cite web|url=http://www.ukmediacentre.pwc.com/Company-history/Chronology-14.aspx |title=Chronology |access-date=27 September 2010 |publisher=PricewaterhouseCoopers |url-status=dead |archive-url=https://web.archive.org/web/20101010183230/http://www.ukmediacentre.pwc.com/Company-history/Chronology-14.aspx |archive-date=10 October 2010 }}</ref>

Ernst & Young expanded its consulting practice heavily during the 1980s and 1990s. During this time, the [[U.S. Securities and Exchange Commission]], and various members of the investment community, began to raise concerns about a potential conflict of interests. This conflict would be brought about by firms offering both consulting and auditing services simultaneously to overlapping clients, a common practice among the "Big Five". In May 2000, Ernst & Young was the first of those firms to fully separate its consulting practices via a sale to the French IT services company [[Capgemini]] for $11&nbsp;billion, creating the new company Capgemini Ernst & Young, which was later renamed back to Capgemini.<ref>[https://query.nytimes.com/gst/fullpage.html?res=9503E6D81339F932A35750C0A9669C8B63 "Capgemini to Acquire Ernst & Young Consulting Business"]. ''[[The New York Times]]''. March 2000.</ref>

=== Recent history, re-branding and expansion ===
[[File:Biurowiec Rondo 1 w Warszawie 2022a.jpg|150px|thumb|left|EY offices in [[Warsaw]], Poland]]
[[File:ErnstYoungBuildingLosAngeles.jpg|200px|thumb|right|[[Ernst & Young Plaza]] in [[Los Angeles, California]], US]]
[[File:Ernst & Young Sandton Office.jpg|thumb|Ernst & Young office in [[Sandton]], [[Johannesburg]], South Africa]]
In 2002, Ernst & Young serviced a large chunk of the clients previously working with [[Arthur Andersen]] after their downfall in connection with the [[Enron scandal]], although it did not engage with any new Arthur Andersen clients from the United Kingdom, China, or the Netherlands.<ref>[https://web.archive.org/web/20080129123646/http://findarticles.com/p/articles/mi_qn4174/is_20030408/ai_n12919502 "Ernst & Young Acquires Anderson India"]. Findarticles. 8 April 2003. Retrieved 9 July 2011.</ref> Four years later, Ernst & Young became the only member of the Big Four to have two member firms in the United States, with the inclusion of [[Mitchell & Titus]], LLP in 2006, the largest minority-owned accounting firm in the United States.<ref>[http://www.ey.com/US/en/About-us/Our-people/About-us-recruiting-minority-recruiting-diversity "Maintaining a Diverse Culture"] {{webarchive |url=https://web.archive.org/web/20100604110017/http://www.ey.com/US/en/About-us/Our-people/About-us-recruiting-minority-recruiting-diversity |date=4 June 2010}}. Ernst & Young. Retrieved 9 July 2011.</ref><ref>[http://www.prnewswire.com/news-releases/mitchell--titus-joins-ernst--young-global-as-a-member-firm-53354547.html "Mitchell & Titus Joins Ernst & Young Global as a Member Firm"]. Prnewswire. Retrieved 9 July 2011.</ref> Mitchell & Titus ended its membership in the EY network effective October 30, 2015.<ref>{{Cite news|url=https://www.accountingtoday.com/news/mitchell-amp-titus-departs-ernst-amp-young-network|title=Mitchell & Titus Departs Ernst & Young Network|work=Accounting Today|access-date=2017-08-22|language=en}}</ref>

In April 2009, [[Reuters]] reported that Ernst & Young, spurred by the global economic downturn, had launched a cost-saving initiative encouraging its staff in [[China]] to take 40 days of low-pay leave between the summer of 2009 and the summer of 2010. Those who participated got a prorated salary equal to 20% of a regular salary, plus the benefits of a full-time employee. The initiative applied to employees in [[Hong Kong]], [[Macau]] and [[mainland China]], where the firm's employees numbered 8,500 in total.<ref>{{cite news|url=http://uk.reuters.com/article/idUKHKG25976420090416|archive-url=https://web.archive.org/web/20090428090353/http://uk.reuters.com/article/idUKHKG25976420090416|url-status=dead|archive-date=28 April 2009|title=Ernst & Young China Staff to Take Low-Pay Leave|author=Chen, George|date=16 April 2009|work=Reuters}}</ref> In 2010, Ernst & Young acquired Terco, the Brazilian member firm of [[Grant Thornton]].<ref>[http://www.gti.org/Press-room/Brazil-member-firm-departure.asp Grant Thornton confirms departure of Brazilian member firm] {{webarchive |url=https://web.archive.org/web/20111114060135/http://www.gti.org/Press-room/Brazil-member-firm-departure.asp |date=14 November 2011}} Grant Thornton, 3 August 2010</ref>

[[File:EY Logo Beam Tag Stacked RGB EN.png|thumb|EY logo, 2013–2018]]
In 2013, the firm officially changed its brand from Ernst & Young to '''EY''', and christened the accompanying tagline: "Building a better working world".<ref>{{Cite web|url=https://www.ey.com/en_gl/about-us|archiveurl=https://web.archive.org/web/20130704001432/http://www.ey.com/GL/en/Issues/Business-environment/building-a-better-working-world#home|url-status=dead|title=About us – Who we are &#124; EY – Global|archivedate=4 July 2013|website=www.ey.com}}</ref><ref name="rebranding">{{cite web|url=https://www.business-live.co.uk/economic-development/ernst--young-rebranded-ey-4883080|title=Ernst & Young rebranded as EY – and Mark Weinberger appointed CEO|date=8 July 2013 |access-date=5 August 2021}}</ref><ref name="rebranding2">{{cite web|url=https://www.advisor.ca/news/industry-news/ernst-young-changes-name-to-ey/|title=Ernst & Young changes name to EY|date=3 July 2013 |access-date=5 August 2021}}</ref><ref>{{cite web|url=http://www.ey.com/US/en/Careers/Fall-2013-Edition-of-EY-Navigator---3---A-new-name---a-new-logo-and-a-new-era-at-EY|title=A new name, a new logo and a new era at EY|publisher=EY|access-date=10 March 2015|archive-url=https://web.archive.org/web/20150301013905/http://www.ey.com/US/en/Careers/Fall-2013-edition-of-EY-Navigator---3---A-new-name---a-new-logo-and-a-new-era-at-EY|archive-date=1 March 2015|url-status=dead|df=dmy-all}}</ref>

Also in 2013, the [[Pope]] of the [[Roman Catholic Church]] hired EY to help review [[Vatican City]] State's finances and help "verify and consult" the institution's administration, including the museums, post office and tax-free department store.<ref>{{cite news|last=Rayman|first=Noah|title=Vatican Hires International Consulting Firm to Help Reform Finances|url=https://world.time.com/2013/11/19/vatican-hires-international-consulting-firm-to-help-reform-finances/|access-date=23 March 2013|newspaper=[[Time (magazine)|Time]]|date=19 November 2013}}</ref> EY expanded further and acquired all of KPMG Denmark's operations including its 150 partners, 1,500 employees and 21 offices.<ref>{{cite news|url=https://www.thetimes.com/article/danes-take-big-leap-to-join-growing-global-rival-wdqsfmhvkb0|title=Danes take big leap to join growing global rival|work=[[The Times]]|access-date=26 February 2015|last1=Dean |first1=James}}</ref>

In 2014, EY acquired global strategy [[consulting firm]] [[EY-Parthenon|The Parthenon Group]], gaining 350 consultants in its then-Transaction Advisory Services practice so that it could provide in-house strategy consulting services to its clients. The business unit has since been rebranded as [[EY-Parthenon]] and is one of the most selective strategy consultancies worldwide.<ref>{{cite web|title=EY to merge with Parthenon Group|url=https://www.ft.com/content/54c8bd40-10df-11e4-b116-00144feabdc0 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/54c8bd40-10df-11e4-b116-00144feabdc0 |archive-date=10 December 2022|website=Financial Times|url-access=subscription}}</ref>

In 2015, EY opened its first global Security Operations Centre in [[Thiruvananthapuram]], Kerala in India, and coincidentally invested $20 million over 5 years to combat the increasing threat of cybercrimes.<ref>{{cite news|url=http://timesofindia.indiatimes.com/tech/tech-news/EYs-first-global-security-operation-centre-in-Kerala/articleshow/47601349.cms|title=E&Y's first global security operation centre in Kerala|work=[[The Times of India]]|date=9 June 2015 |access-date=17 June 2015}}</ref>

In 2017 EY announced it was opening an executive support center in Tucson, Arizona, US, creating 125 new jobs.<ref>{{Cite news|url=http://tucson.com/business/tucson/ernst-young-is-bringing-new-jobs-to-tucson/article_2b3a80ec-d233-5f6a-8cbf-8c47ce22f81b.html|title=Ernst & Young is bringing 125 new jobs to Tucson|last=Star|first=Murphy Woodhouse Arizona Daily|work=Arizona Daily Star|access-date=2017-03-01}}</ref> That same year, the company opened a Digital Security Operations Center, located in Muscat, Oman, to cover the EMEIA region as part of a $10 million investment.<ref>{{cite web|url=http://www.omanobserver.om/mena-digital-security-operations-centre-opened-muscat/|title=MENA digital security operations centre opened in Muscat|last=Mendoza|first=Jomar|date=2017-12-09|website=Oman Observer|language=en-US|access-date=2018-12-15}}</ref>

In 2018, EY opened a $4.4 million professional services center in Louisville, Kentucky, US, creating 125 new jobs,<ref>{{cite web|url=http://www.bizjournals.com/louisville/news/2017/02/23/ernst-young-to-create-125-jobs-with-national.html|title=Ernst & Young to create 125 jobs with national support center in Louisville|website=www.bizjournals.com|access-date=2017-03-01}}</ref> and announced it would open an IT / tech hub in [[Nashville, Tennessee|Nashville, TN]], US, creating 600 regional jobs.<ref>{{cite web|url=http://journalrecord.com/2018/11/15/ernst-and-young-to-bring-600-jobs-to-nashville/|title=Ernst and Young to bring 600 jobs to Nashville|date=15 November 2018|publisher=Journal Record|access-date=16 November 2018}}</ref>

In November 2022, it was announced EY had acquired the [[Sydney]]-headquartered data and analytics specialists, Bridge Business Consulting.<ref>{{Cite web |title=EY Australia acquires Bridge Business Consulting {{!}} News |url=http://www.research-live.com/article/news/ey-australia-acquires-bridge-business-consulting/id/5105842 |access-date=2022-11-25 |website=Research Live |language=en}}</ref>

===Project Everest===

The ''Wall Street Journal'' reported in May 2022 that the firm might split its accounting and advisory divisions into two new, separate businesses.<ref>{{cite news |last1=Maurer |first1=Mark |last2=Eaglesham |first2=Jean |title=Accounting Firm EY Considers Split of Audit, Advisory Businesses |url=https://www.wsj.com/articles/accounting-firm-ey-considers-splitting-audit-and-advisory-businesses-11653592588?mod=article_inline |access-date=8 June 2022 |work=[[The Wall Street Journal]] |date=26 May 2022}}</ref> The plan, referred to internally as "Project Everest" would involve the consulting business completing an [[initial public offering]], the proceeds of which would be used to compensate partners at the new, separate auditing company.<ref>{{cite news |last1=Eaglesham |first1=Jean |last2=Brown |first2=Ken |title=EY's Breakup Plan Means Windfalls for Partners |url=https://www.wsj.com/articles/eys-breakup-plan-means-windfalls-for-partners-11655726838?mod=hp_lead_pos1 |access-date=21 June 2022 |work=[[The Wall Street Journal]] |date=20 June 2022}}</ref> The firm's debt has proven to be an internal obstacle to the split.<ref name=wsj_ey2922>{{cite news |last1=Eaglesham |first1=Jean |title=Ernst & Young Split Plan Held Up by Debt Issues |url=https://www.wsj.com/articles/ernst-young-split-plan-held-up-by-debt-issues-11659059736?mod=hp_lead_pos4 |access-date=29 July 2022 |work=[[The Wall Street Journal]] |date=29 July 2022}}</ref> The debt is mostly owed to former partners of EY, taking the form of what the ''Wall Street Journal'' characterized as "effectively an unfunded pension plan".<ref name=wsj_ey2922/> Would-be partners of the new accounting firm have expressed reservations as their descendant firm, the smaller of the new organizations, would presumably absorb most of the debt.<ref name=wsj_ey2922/> On 5 September 2022, the firm announced that partners would vote on whether to split EY into two businesses.<ref>{{cite news |last1=Eaglesham |first1=Jean |title=Ernst & Young Leaders Expected to Approve Plan to Split Accounting Company |url=https://www.wsj.com/articles/ernst-young-leaders-expected-to-approve-plan-to-split-accounting-company-11662404933 |access-date=8 September 2022 |work=[[The Wall Street Journal]] |date=5 September 2022}}</ref> EY's member firms in China, Hong Kong, Macau, and Israel stated that they would not split.<ref>{{Cite news |last= |date=2022-09-09 |title=EY's Greater China member firms say they won't take part in firm's global break-up |language=en |work=[[Reuters]] |url=https://www.reuters.com/business/eys-greater-china-member-firms-say-they-wont-take-part-firms-global-break-up-2022-09-09/ |access-date=2022-09-11}}</ref><ref>{{Cite news|url=https://www.ft.com/content/a19654d2-5633-4d37-b552-f432779509a3 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/a19654d2-5633-4d37-b552-f432779509a3 |archive-date=10 December 2022 |url-access=subscription |url-status=live|title=EY Israel rejects break-up plan pushed by global bosses|newspaper=Financial Times |date=25 October 2022}}</ref> Rival firms such as KPMG and Deloitte have said they do not intend to imitate EY.<ref>{{cite news |last1=Eaglesham |first1=Jean |title=EY Leaders Green Light Split Plan |url=https://www.wsj.com/articles/ey-to-announce-breakup-plan-for-audit-and-advisory-businesses-11662639241?mod=hp_lead_pos2 |access-date=8 September 2022 |work=[[The Wall Street Journal]] |date=8 September 2022}}</ref>

In March 2023, Julie Boland, head of EY US, stated in a webcast that the split would be temporarily paused amid internal debate over the proportioning of its tax service line among the proposed consulting and assurance spinoffs.<ref>{{cite news |last1=O’Dwyer |first1=Michael |title= EY split paused amid partner infighting over fate of tax experts |url= https://www.ft.com/content/7d2cddf6-5d5a-4011-b860-7e8d2705d7e4 |access-date=14 March 2023 |work=[[Financial Times]] |date=9 March 2023}}</ref>

The firm cancelled Project Everest as the US portion of the firm withdrew its support for the split in April 2023.<ref>{{cite news |last1=Iacone |first1=Amanda |title=EY Calls Off Splitting Its Audit and Consulting Units |url=https://www.bloomberg.com/news/articles/2023-04-11/ey-cancels-split-of-audit-consulting-units-after-talks-fail?srnd=premium&sref=CIpmV6x8 |access-date=11 April 2023 |work=Bloomberg.com |date=11 April 2023 |language=en}}</ref> Preparing and planning for the split cost EY $600 million.<ref>{{cite news |last1=Eaglesham |first1=Jean |last2=Saeedy |first2=Alexander |last3=Maurer |first3=Mark |title=EY Breakup Plan Doomed by Miscalculations and Powerful Opponents |url=https://www.wsj.com/articles/ey-breakup-plan-doomed-by-miscalculations-and-powerful-opponents-61b7e02d?mod=hp_lead_pos2 |access-date=12 April 2023 |work=The Wall Street Journal |date=12 March 2023}}</ref>

== Global structure ==
The firm is organized geographically into three areas: Europe, Middle East, India and Africa; the Americas; and Asia-Pacific.<ref>{{cite web|title=Our locations|url=https://www.ey.com/en_ae/locations|access-date=20 July 2020|publisher=EY}}</ref>

In 2018, the company underwent a transformation of some of its region borders, primarily the union of its [[Commonwealth of Independent States|CIS]] region (operating in the former Soviet Union) and the [[Eastern Europe|CEE]] region (Eastern Europe) to create the CESA block.<ref>{{cite web|url=http://business-review.eu/profiles1/whoss-news/bogdan-ion-becomes-chief-operating-officer-of-eys-central-and-south-eastern-europe-and-central-asia-region-176400|title=Bogdan Ion becomes Chief Operating Officer of EY's Central and South Eastern Europe and Central Asia Region|date=2018-07-11|website=Business Review|language=ro|access-date=2019-04-11}}</ref>

==Services==
Over the course of its operations, EY has transformed its business model and diversified its pool of offered services. Over the course of the last decade EY has substantially altered its business approach to offer a more comprehensive scope of services. This is mainly attributed to an intensified competition in the existing market of professional services, and competition in new markets: [[investment banking]] and strategic consultancy. According to the latest published data, the company has the following four main service lines:<ref name="autogenerated1">{{cite web |url=http://www.ey.com/gl/en/newsroom/news-releases/news-ey-reports-strong-global-revenue-growth-in-2017#BetterWorkingWorld |title=EY reports record global revenues in 2016 – up by 9% |access-date=9 October 2016 |archive-date=29 March 2019 |archive-url=https://web.archive.org/web/20190329183752/https://www.ey.com/gl/en/newsroom/news-releases/news-ey-reports-strong-global-revenue-growth-in-2017#BetterWorkingWorld |url-status=dead }}</ref>
* [[Assurance services|Assurance]]: comprises Financial [[Audit]], [[Financial Accounting]] Advisory Services, CCaSS (Climate Change and Sustainability services) and Forensic & Integrity Services.
* [[Tax advisor|Tax]]: [[transfer pricing|Transfer Pricing]], International Tax Services, Business Tax Compliance, Global Trade, [[Indirect tax|Indirect Tax]], Tax Accounting & Risk Advisory Services, Tax Technology and Transformation, [[Mergers and acquisitions|Transaction Tax]].
* [[Management consulting|Consulting]]: comprises three sub-service lines – Business Consulting, Technology Consulting, and People Advisory Services.
* [[Strategy consulting|Strategy]] and Transactions (SaT): deals with companies' capital transformation – including Valuation, Modelling, and Economics (VME); Transactions Due Diligence; Real Estate Advisory; M&A; Turnaround & [[Restructuring]] (financial and operational); Corporate Finance.
* People Advisory Services: HR, immigration, workforce mobility programs
* Core Business Services: business development, marketing, legal, risk management

{| class="wikitable"
|+EY revenues by service line – in US$ millions
!
!FY23
!FY22
!FY21
!FY20
!FY19
!FY18
!FY17
!FY16
|-
|Assurance
|15,096
|14,282
|13,567
|12,821
|12,646
|12,534
|11,632
|11,301
|-
|Tax
|12,088
|11,240
|10,467
|9,765
|9,460
|8,995
|8,179
|7,751
|-
|Consulting
|16,104
|13,795
|11,135
|10,467
|10,236
|9,621
|8,526
|7,846
|-
|Strategy and transactions
|6,066
|5,848
|4,790
|4,181
|4,052
|3,622
|3,067
|2,728
|-
|'''Total'''
|'''49,354'''
|'''45,165'''
|'''39,959'''
|'''37,234'''
|'''36,394'''
|'''34,772'''
|'''31,404'''
|'''29,626'''
|}

== Accounting scandals ==
===Audit practices===
EY has been involved in many [[accounting scandals]]: [[Bank of Credit and Commerce International]] (1991), [[Informix Corporation]] (1996), [[Sybase]] (1997), [[Cendant]] (1998), [[One.Tel]] (2001), [[AOL]] (2002), [[HealthSouth Corporation]] (2003), [[Chiquita Brands International]] (2004), [[Lehman Brothers]] (2010), [[Sino-Forest Corporation]] (2011), [[Olympus Corporation]] (2011), [[Stagecoach Group]] (2017),<ref name="shabong1">{{Cite news |last=Shabong |first=Yadarisa |date=August 25, 2021 |title=EY fined 3.5 mln stg for failings in Stagecoach audit |work=Reuters |url=https://www.reuters.com/business/ey-fined-35-mln-pounds-by-uk-accounting-watchdog-over-stagecoach-audit-2021-08-25/ |access-date=June 4, 2022}}</ref> [[Wirecard scandal|Wirecard]] (2020),<ref name="gu-calls-2020">{{cite news |newspaper=The Guardian |url=https://www.theguardian.com/business/2020/nov/15/call-for-three-year-ban-on-ey-bidding-on-public-contracts |title=Call for three-year ban on EY bidding on public contracts |first=Simon |last=Goodley |date=15 November 2020 |access-date=15 November 2020}}</ref> [[Luckin Coffee]] (2020)<ref name="WSJ_Yang_20201016">{{Cite news |issn=0099-9660 |last1=Yang |first1=Jing |first2=Patricia |last2=Kowsmann |first3=Mark |last3=Maurer |title=String of Firms That Imploded Have Something in Common: Ernst & Young Audited Them |work=[[Wall Street Journal]] |access-date=9 December 2020 |date=16 October 2020 |url=https://www.wsj.com/articles/string-of-firms-that-imploded-have-something-in-common-ernst-young-audited-them-11602863319}}</ref> and [[NMC Health]] (2020).<ref name="gu-nmc">{{cite news |newspaper=The Guardian |url=https://www.theguardian.com/business/2020/may/04/watchdog-investigates-ey-audit-of-scandal-hit-nmc-health |title=Watchdog investigates EY audit of scandal-hit NMC Health |first=Julia |last=Kollewe |date=4 May 2020 |access-date=15 November 2020}}</ref>

In 2004, Ernst & Young was punished for forming a lucrative business arrangement with one of its audit clients, PeopleSoft, thus creating a conflict of interest. As a result, the firm was barred by the SEC from accepting any new publicly traded companies as audit clients for six months.<ref>{{cite news|last1=Weil|first1=Jonathan|title=Ernst & Young Gets SEC Penalty For Ties to Client|url=https://www.wsj.com/articles/SB108214408244385161|access-date=18 December 2016|work=The Wall Street Journal|date=19 April 2004}}</ref>

In April 2004, [[The Equitable Life Assurance Society|Equitable Life]], a UK life assurance company, sued EY after nearly collapsing but abandoned the case in September 2005. EY described the case as "a scandalous waste of time, money and resources for all concerned."<ref>[http://news.bbc.co.uk/1/hi/business/4271048.stm "Equitable Drops High Court Action"]. [[BBC News]]. 2005. Retrieved 26 August 2006.</ref>

In 2009, EY, the former auditors of [[Sons of Gwalia]], agreed to a $125m settlement over their role in the gold miner's collapse in 2004. [[Ferrier Hodgson]], the company's administrator, had claimed EY was negligent over the accounting of gold and dollar hedging contracts. However, EY said that the proposed settlement was not an admission of any liability.<ref name="Ernst">[http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement/ "Ernst & Young Agrees to $125m Sons of Gwalia Settlement"] {{Webarchive|url=https://web.archive.org/web/20110205090753/http://au.news.yahoo.com/thewest/a/-/breaking/5912273/e-y-agrees-to-125m-sons-of-gwalia-settlement|date=5 February 2011}}. ''[[The West Australian]]'' 4 September 2009. Retrieved 4 September 2009.</ref>

Following allegations by the [[Securities and Exchange Commission]] (SEC) that EY had committed accounting fraud in its work auditing the books of [[Bally Total Fitness]], EY reached two settlements in 2008, including a fine of $8.5 million.<ref>{{cite news |url=https://www.nytimes.com/2009/12/18/business/18audit.html?pagewanted=print |title=Ernst to Pay the S.E.C. $8.5&nbsp;Million |author=Norris, Floyd |author-link=Floyd Norris |work=[[The New York Times]] |date=18 December 2009 |access-date=21 April 2011}}</ref>

EY Hong Kong resigned from the audit of Standard Water on when it emerged that although EY Hong Kong had signed off the audit, it had been effectively outsourced to the affiliate in mainland China, which had received 99.98% of the fee.<ref name="SCMP20130518">{{cite news|url=http://www.scmp.com/business/article/1240178/eys-outsourced-auditing-raises-eyebrows-court|title=E&Y's outsourced auditing raises eyebrows in court|last=Yam|first=Shirley|date=18 May 2013|newspaper=[[South China Morning Post]]}}</ref> This was important because shareholders have less confidence in mainland auditors and because audit papers on the mainland are subject to state secrecy laws and can be withheld from outside regulators.<ref name="SCMP20130518" /> EY's quality and risk management leader (Greater China) even testified in the Court of First Instance that he was not sure whether there was a formal agreement covering the relationship between the two EY entities.<ref name="SCMP20130518" /> The court case in 2013 came as US regulators were taking an interest in similar cases of accounting fraud in mainland China.<ref name="SCMP20130518" />

In September 2016, the US securities regulatory SEC fined EY US US$9.3 million for failures, including an auditor's romantic involvement with a client.  Another partner on the team who was auditing a different public company became romantically involved with its chief accounting officer.<ref>{{Cite news |last=Agnew |first=Harriet |date=September 19, 2016 |title=EY fined $9m for improper auditor relationships |work=The Financial Times |url=https://www.ft.com/content/d5f4c37e-7e78-11e6-8e50-8ec15fb462f4 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/d5f4c37e-7e78-11e6-8e50-8ec15fb462f4 |archive-date=10 December 2022 |url-access=subscription |url-status=live |access-date=June 4, 2022}}</ref>

In October 2016, EY settled with the SEC because they were unable to detect financial statement fraud that was committed by the [[Weatherford International|Weatherford]] tax department.<ref>{{cite web|url=https://big4accountingfirms.com/the-blog/sec-fines-ernst-young-for-weatherford-fraud|title=Ernst & Young Settles with SEC over Weatherford Fraud – The Big 4 Accounting Firms|author=Big 4 accounting firms|date=2016-10-23|publisher=Thebig4accountingfirms.com|access-date=2016-11-04}}</ref> Weatherford misstated their financial statements by manipulating the income tax line item in their financials. EY was Weatherford's independent auditors when the fraud was perpetrated.<ref>{{cite web|url=https://www.sec.gov/news/pressrelease/2016-194.html|title=Oil Services Company Paying $140 Million Penalty for Accounting Fraud|date=2016-09-27|publisher=SEC.gov|access-date=2016-11-04}}</ref>

In October 2016, [[Mozilla]] stopped accepting [[WebTrust]] audits from Ernst & Young Hong Kong<ref>{{cite web|url=https://blog.mozilla.org/security/2016/10/24/distrusting-new-wosign-and-startcom-certificates/|title=Distrusting New WoSign and StartCom Certificates|author=Mozilla|date=2016-10-24|publisher=blogs.mozilla.org|access-date=2017-02-12}}</ref> due to their failure "to detect multiple issues they should have detected" during their audits of [[WoSign]].<ref>{{cite web|url=https://docs.google.com/document/d/1C6BlmbeQfn4a9zydVi2UvjBGv6szuSB4sMYUcVrR8vQ/preview|title=WoSign and StartCom|author=Mozilla|date=2016-09-26|publisher=Google Docs|access-date=2017-02-12}}</ref>

In February 2017, in response to questions regarding misissued certificates, [[NortonLifeLock|Symantec]] stated they would no longer accept WebTrust audits from E&Y Korea and E&Y Brazil due to deficiencies in these audits.<ref>{{cite web|url=https://bug1334377.bmoattachments.org/attachment.cgi?id=8836487|title=Symantec Second Response to Mis-Issuance Questions|author=Symantec|date=2017-02-12|publisher=bugzilla.mozilla.org|access-date=2018-08-16}}</ref>

According to ''[[The Wall Street Journal]]'', in 2019, EY had audited [[WeWork]] the office-space company that "nearly collapsed after fumbling a planned initial public offering".<ref name="WSJ_Yang_20201016" />

In April 2020, a former partner and whistleblower was awarded $10.8 million for ethical misconduct by EY in a Dubai gold audit by the high court in London. EY appealed the decision,<ref>{{cite web|url=https://www.theguardian.com/business/2020/apr/17/ey-ordered-pay-whistleblower-11m-dubai-gold-audit-case |title=EY ordered to pay whistleblower $11m in Dubai gold audit case|work=The Guardian|date= 17 April 2020|access-date=18 April 2020}}</ref> but then dropped the appeal in March 2021.<ref>{{cite news |last1=Verity |first1=Andy |title=EY drops appeal against $10.8m whistleblower payment |url=https://www.bbc.com/news/business-56564719 |access-date=27 May 2022 |agency=BBC News |date=29 March 2021}}</ref>

In 2020, EY failed to uncover $2 billion that was missing at [[Wirecard]] AG, a German fintech payment processing company.<ref name="WSJ_Yang_20201016" /> This resulted in a lawsuit filed against EY in June 2020.<ref>{{cite web|date=2020-06-08|title=Ernst & Young sued over Wirecard as accounting woes add up|url=https://www.accountingtoday.com/articles/ernst-young-sued-over-wirecard-as-accounting-woes-add-up|access-date=22 June 2020|website=Accounting Today|language=en}}</ref> An investigation by the [[Bundestag]] revealed in April 2021 that EY's audits of defunct payments group Wirecard suffered from serious shortcomings over a period of years.<ref>{{Cite news|last=Storbeck|first=Olaf|date=April 17, 2021|title=EY's Wirecard audits suffered serious shortcomings, German probe finds|work=FT.com|publisher=Financial Times Group|url=https://www.ft.com/content/abd89375-3fa1-4457-abd6-b3e3231ba339 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/abd89375-3fa1-4457-abd6-b3e3231ba339 |archive-date=10 December 2022 |url-status=live|access-date=May 5, 2021|url-access=subscription}}</ref>

EY also failed to identify $300 million in "fabricated sales" in their 2020 audit of the coffee chain [[Luckin Coffee]]<ref name="WSJ_Yang_20201016" /> and $5 billion in "undisclosed debt" at [[NMC Health]] and [[Finablr]].<ref name="WSJ_Yang_20201016" />

In August 2021, EY US agreed to pay US$10 million as part of a settlement with the SEC related to charges of auditor independence misconduct perpetrated by several of its partners to secure [[Sealed Air]] as a client.<ref>{{cite web |last=Brasseur |first=Kyle |date=August 2, 2021 |title=EY fined $10M for independence violations in Sealed Air engagement |url=https://www.complianceweek.com/regulatory-enforcement/ey-fined-10m-for-independence-violations-in-sealed-air-engagement/30640.article |access-date=June 4, 2022 |website=Compliance Week}}</ref>

In August 2021, UK accounting regulatory [[Financial Reporting Council]] (FRC) fined EY UK £3.5 million (US$4.8 million) for failing to challenge financial statements in its 2017 audit of UK transport company, [[Stagecoach Group]].  In addition, the auditing engagement partner Mark Harvey was sanctioned and fined £100,000. EY's fine was subsequently cut to £2.2 million for admitting to the failings, with Harvey's fine reduced to £70,000 for the same reason.<ref name="shabong1" />

In December 2021, EY filed a criminal complaint against unknown persons with [[Munich]] prosecutors relating to the alleged leak of a classified German parliamentary report relating to its role in the collapse of payments firm, [[Wirecard]], to the German newspaper, [[Handelsblatt]].<ref>{{Cite news|last=Storbeck|first=Olaf|date=November 22, 2021|title=EY files criminal complaint over leaking of classified Wirecard report|work=The Financial Times|url=https://www.ft.com/content/4b42b0f4-6b93-440f-acd1-513b12e96860 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/4b42b0f4-6b93-440f-acd1-513b12e96860 |archive-date=10 December 2022|access-date=December 16, 2021|url-access=subscription}}</ref>

In April 2022 the administrators of [[NMC Health]] filed a $2.5 billion lawsuit against EY, alleging negligence during its work on NMC's accounts spanning a seven-year period.<ref>{{cite web |title=Auditor EY hit by £2bn negligence claim over NMC Health collapse |url=https://news.sky.com/story/auditor-ey-hit-by-2bn-negligence-claim-over-nmc-health-collapse-12601598 |publisher=[[Sky News]] |access-date=30 April 2022}}</ref>

In 2023, the [[Public Company Accounting Oversight Board]] reported on four EY Canada audits conducted in 2022 and found that half had "multiple deficiencies".<ref>{{cite news |last=Ellis |first=Colin |date=February 26, 2024 |title=PCAOB finds fault with half of Ernst and Young Canada audits inspected |url=https://canadian-accountant.com/content/practice/pcaob-ey-canada-inspection-report-2023 |work=Canadian Accountant |access-date=June 11, 2024}}</ref>

In April 2023, the German Abschlussprüferaufsichtsstelle (APAS) (the federal watchdog, responsible for the oversight on auditors) assessed, that EY has committed violations of duty on its Wirecard mandate and prohibited the company for two years to accept new audit mandates for companies at the German stock exchange.<ref>{{Cite web |last1=Bender |first1=René |last2=Fröndhoff |first2=Bert |last3=Greive |first3=Martin |last4=Votsmeier |first4=Volker |date=2023-04-03 |title=Wirecard-Skandal: EY darf zwei Jahre keine neuen Prüfungsmandate bei Börsenkonzernen übernehmen |trans-title=EY is not allowed to take on new audit mandates at stock exchange groups for two years |url=https://www.handelsblatt.com/unternehmen/dienstleister/wirecard-skandal-ey-darf-zwei-jahre-keine-neuen-pruefungsmandate-bei-boersenkonzernen-uebernehmen/29071046.html |access-date=2023-04-03 |website=www.handelsblatt.com |language=de}}</ref>

In December 2024, a lawsuit was filed against EY accusing it of assisting the UAE-based Brooge Petroleum and Gas Investment Company FZE in defrauding investors during a 2019 [[special-purpose acquisition company]] (SPAC) merger. It alleges that Brooge fabricated financial data through fake invoices, customers and affiliated parties and forged 30-80% of its revenues between 2018 and 2020. EY allegedly supported Brooge’s scheme by “issuing unqualified audit opinions”. The lawsuit was filed by a group of Boorge Energy shareholders, who accused EY of fraud and violations of the [[Securities Exchange Act of 1934]]. The plaintiffs were seeking damages, interest, and legal fees.<ref>{{cite news|last=Pazanowski |first=Bernie |title=Ernst & Young Accused of Helping Brooge Defraud SPAC Investors |date=18 December 2024 |url=https://news.bloomberglaw.com/us-law-week/ernst-young-accused-of-helping-brooge-defraud-spac-investors |website=Bloomberg Law |access-date=1 January 2025}}</ref><ref>{{cite news|last1=Smith |first1=Robert |last2=Kissin |first2=Ellesheva |title=Ernst & Young Accused of Helping Brooge Defraud SPAC Investors |date=23 December 2024 |url=https://news.bloomberglaw.com/us-law-week/ernst-young-accused-of-helping-brooge-defraud-spac-investors |website=Financial Times |access-date=1 January 2025}}</ref>

In April 2025, the company was fined £4.9 million by the UK [[Financial Reporting Council]] for 'serious breaches in standards' in its audits of [[Thomas Cook Group|Thomas Cook]], which collapsed in 2019.<ref>{{Cite news |last=Kissin |first=Ellesheva |date=2025-04-10 |title=EY fined £4.9mn over Thomas Cook audits before 2019 collapse |url=https://www.ft.com/content/d679d6bd-13ac-4827-9dcc-37a82179d12a |access-date=2025-04-22 |work=Financial Times}}</ref>

===Exam cheating by audit professionals===

In June 2022, the SEC fined the firm US$100 million "for cheating by its audit professionals on exams required to obtain and maintain [[Certified Public Accountant]] (CPA) licenses, and for withholding evidence of this misconduct from the SEC's Enforcement Division during the Division's investigation of the matter".<ref name="sec-2022">{{cite web|url=https://www.sec.gov/news/press-release/2022-114 |title=Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation |publisher=SEC.gov |date= |accessdate=2022-06-29}}</ref> EY admitted "the facts underlying the SEC’s charges"<ref name="sec-2022" /> and the penalty is a record imposed on a US audit firm.<ref>{{Cite news |last=Michaels |first=Lucas |date=June 28, 2022 |title=Ernst & Young Fined $100 Million in Ethics Exam-Cheating Probe |work=The Wall Street Journal |url=https://www.wsj.com/articles/ey-paying-100-million-to-settle-probe-of-auditors-cheating-on-ethics-exams-11656410401?mod=hp_lead_pos2 |access-date=June 28, 2022}}</ref> The [[Canadian Public Accountability Board]] has announced that it will investigate whether EY's Canadian arm was involved in similar practices.<ref>{{cite news |last= Milstead|first= David|date= June 29, 2022|title= Canada's accounting regulator to review EY after company fined in ethics exam cheating scandal|url= https://www.theglobeandmail.com/business/article-ey-ernst-young-canada-audit/|work=[[The Globe and Mail]]}}</ref>

=== Investment banking ===
In 2009, in the [[Anglo Irish Bank hidden loans controversy]], EY was criticised by politicians<ref>[http://www.shane-ross.ie/archives/456/where-were-the-auditors/ "Where Were the Auditors?"] {{webarchive |url=https://web.archive.org/web/20120213080002/http://www.shane-ross.ie/archives/456/where-were-the-auditors/ |date=13 February 2012 }}. [[Shane Ross]]. 12 January 2009. Retrieved 9 July 2011.</ref> and the shareholders of Anglo Irish Bank for failing to detect large loans to [[Seán FitzPatrick]], its chairman, during its audits. The Irish Government had to subsequently take full ownership of the Bank at a cost of €28 billion.<ref>[http://www.irishtimes.com/newspaper/opinion/2010/0812/1224276632260.html "The Cost of Anglo-Irish Bank"]. ''[[The Irish Times]]''. 12 August 2010. Retrieved 9 July 2011.</ref><ref>{{cite news |url=http://www.irishtimes.com/newspaper/ireland/2009/0117/1232059657178.html |title=Anglo's board and auditors criticised at egm Shareholders Told Kyle Swartzlander Owed Bank a Total of €129M in 2007 |newspaper=The Irish Times |date=1 January 2009 |access-date=9 July 2011 |archive-date=22 May 2011 |archive-url=https://web.archive.org/web/20110522003239/http://www.irishtimes.com/newspaper/ireland/2009/0117/1232059657178.html |url-status=dead }}</ref> The Irish Chartered Accountants Regulatory Board appointed John Purcell to investigate.<ref>[http://www.irishtimes.com/newspaper/breaking/2008/1219/breaking13.html?via=mr "Drumm Resigns as Chief Executive of Anglo Irish"] {{webarchive |url=https://web.archive.org/web/20120919235939/http://www.irishtimes.com/newspaper/breaking/2008/1219/breaking13.html?via=mr |date=19 September 2012 }}. ''[[The Irish Times]]''. 12 December 2008. Retrieved 9 July 2011.</ref> EY said it "fundamentally disagrees with the decision to initiate a formal disciplinary process" and that "there has been no adverse finding made against EY in respect of the audit of Anglo Irish Bank."<ref>[http://www.ft.com/cms/s/0/e28c7832-ded4-11e0-a228-00144feabdc0.html#axzz1lRvLoBph "E&Y Faces Probe on Anglo Irish Bank Audit"]. ''[[Financial Times]]''. 14 September 2011.</ref>

In 2009, EY agreed to pay US$200m out of court to settle a [[negligence]] claim by the liquidators of [[Akai]] Holdings.<ref name="SCMP20100127">{{cite news | url=http://www.scmp.com/article/704741/ernst-young-pays-settle-negligence-claim | title=Ernst & Young pays up to settle negligence claim | first=Naomi | last=Rovnick | date=27 January 2010 | newspaper=South China Morning Post}}</ref> Separately the firm was accused of falsifying and doctoring documents it presented to defend against the negligence claim by Akai's liquidators.<ref name="SCMP20090930">{{cite news | url=http://www.scmp.com/article/694025/raids-arrest-fraud-police-probe-akai-files | title=Raids, arrest as fraud police probe Akai files | first1=Naomi | last1=Rovnick | first2=Clifford | last2=Lo| date=30 September 2009 | newspaper=South China Morning Post}}</ref> In a separate lawsuit, a former EY senior partner from 1984 to 1991, Cristopher Ho, and his listed company, Grande Holdings, paid over US$100m to Akai creditors to settle Akai's liquidators' claim that Ho conspired with Ting of stripping assets from Akai.<ref>{{cite web|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWP18uiUC6dQ |publisher=Bloomberg |title=Akai Liquidator to Receive Payment in Settlement With Grande |first1=John |last1=Duce |first2=Andrea |last2=Tan |date=5 October 2009 |url-status=dead |archive-url=https://web.archive.org/web/20140222154521/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWP18uiUC6dQ |archive-date=22 February 2014 |df=dmy }}</ref><ref>{{cite news|last1=Rovnick|first1=Naomi|title=Akai saga ends with 'US$100m payout'|url=http://www.scmp.com/article/694606/akai-saga-ends-us100m-payout|access-date=18 December 2016|work=The South China Morning Post|date=6 October 2009}}</ref> Police raided the Hong Kong office and arrested an EY partner who had been an audit manager on the Akai account from December 1997, although audit documents had been doctored dating back to 1994.<ref name="SCMP20090930" /> Akai was said to be the firm's largest client for most of the 1990s from Hong Kong.<ref>{{cite news|last1=Rovnick|first1=Naomi|title=Hard work pays off for 'vicious' Akai liquidator|url=http://www.scmp.com/article/694648/hard-work-pays-vicious-akai-liquidator|access-date=18 December 2016|work=The South China Morning Post|date=6 October 2009}}</ref>
The EY partner for the Akai account between 1991 and 1999, [[David Sun Tak-kei]], faced no charges and went on to become co-managing partner for EY China.<ref name="SCMP20090930" /> A few months later EY settled a similar claim of up to HK$300m from the liquidators of Moulin Global Eyecare, an audit client of the Hong Kong affiliate between 2002 and 2004.<ref name="SCMP20100127" /> The liquidators described the Moulin accounts as a "morass of [[wikt:dodginess|dodginess]]".<ref name="SCMP20100127" />

The [[Valukas Report]] issued in 2010<ref>[http://dealbook.blogs.nytimes.com/2010/03/11/lehman-directors-did-not-breach-duties-examiner-finds/#reports "Lehman Directors Did Not Breach Duties Examiner Finds"]. ''[[DealBook]]'' (blog of ''[[The New York Times]]''). 11 March 2010. Retrieved 9 July 2011.</ref> charged that [[Lehman Brothers]] engaged in a practice known as [[repo 105]] and that EY, Lehman's auditor, was aware of it. EY was accused of professional [[malpractice]] regarding the lack of disclosure of Lehman's repo 105 practice in Lehman's public filings.<ref name=Fraternite>{{cite web|title=Liberté, Egalité, Fraternité: Big Lehman Brothers Troubles For Ernst & Young (Mar 15, 2010)|url=http://retheauditors.com/2010/03/15/liberte-egalite-fraternite-lehman-brothers-troubles-for-ernst-young-threaten-the-big-4-fraternity/|website=re:_TheAuditors.com|access-date=18 December 2016}}</ref> New York prosecutors announced in 2010<ref>[http://www.ag.ny.gov/press-release/attorney-general-cuomo-sues-ernst-young-assisting-lehman-brothers-financial-fraud "Attorney General Cuomo Sues Ernst & Young for Assisting Lehman Brothers in Financial Fraud"] {{Webarchive|url=https://web.archive.org/web/20140305132730/http://www.ag.ny.gov/press-release/attorney-general-cuomo-sues-ernst-young-assisting-lehman-brothers-financial-fraud |date=5 March 2014 }}. [[New York Attorney General]]. 21 December 2010.</ref> that they have sued the firm. David Goldfarb, a Lehman CFO who concocted the repo 105 balance sheet window dressing technique was a former senior partner of EY.<ref name=Fraternite/> EY said that its last audit of Lehman Brothers was for the fiscal year ending 30 November 2007 and that Lehman's financial statements were fairly presented in accordance with [[Generally Accepted Accounting Principles]].<ref>[https://www.cbsnews.com/news/lehman-cooked-books-before-collapse-report-finds/ "Lehman Cooked Books before Collapse, Report Finds"]. [[CBS News]]. 12 March 2010. Retrieved 9 July 2011.</ref><ref>[http://dealbook.blogs.nytimes.com/2010/03/11/lehman-directors-did-not-breach-duties-examiner-finds/ Court-Appointed Lehman Examiner Unveils Report]. ''[[DealBook]]'' (blog of ''[[The New York Times]]''). 11 March 2010. Retrieved 9 July 2011.</ref><ref>[http://www.accountancyage.com/accountancyage/news/2259670/y-face-questions-lehman-audit "Lehman Smoking Gun Leaves E&Y Facing Questions"] {{webarchive |url=https://web.archive.org/web/20100502185054/http://www.accountancyage.com/accountancyage/news/2259670/y-face-questions-lehman-audit |date=2 May 2010 }}. ''[[Accountancy Age]]''. Retrieved 9 July 2011.</ref> In March 2015, EY settled Lehman-related lawsuits with municipalities in New Jersey and California.<ref>{{cite web|url=https://www.wsj.com/articles/ernst-young-settles-lehman-suits-with-new-jersey-california-municipalities-1426288420|title=Ernst & Young Settles Lehman Suits With New Jersey, California Municipalities|author=Patrick Fitzgerald|date=13 March 2015|work=WSJ|access-date=6 April 2015}}</ref>

In 2014, tax arrangements negotiated by EY for [[The Walt Disney Company]], [[Koch Industries]], [[Skype]], and other [[multinational corporation]]s became public in the so-called ''[[Luxembourg Leaks]]''. The disclosure of these and other tax arrangements led to controversial discussions about [[tax avoidance]].<ref>{{cite news|newspaper=The Guardian|url=https://www.theguardian.com/business/2014/dec/09/-sp-luxembourg-tax-files-how-junckers-duchy-accommodated-skype-and-the-koch-empire|title=Luxembourg tax files: how Juncker's duchy accommodated Skype and the Koch empire|date=9 December 2014|access-date=17 December 2014}}</ref><ref>{{cite news|newspaper=The New York Times |url=https://www.nytimes.com/2014/12/11/business/disney-and-koch-industries-had-luxembourg-tax-deals-journalists-group-says.html?_r=0|title=Disney and Koch Industries Had Luxembourg Tax Deals, Journalists' Group Says|date=10 December 2014|access-date=17 December 2014}}</ref><ref>{{cite news|newspaper=Irish Times|url=http://www.irishtimes.com/business/economy/koch-industries-implicated-in-luxembourg-leaks-1.2031660|title=Koch Industries implicated in Luxembourg leaks|date=10 December 2014|access-date=17 December 2014}}</ref>

In 2015, EY's member firm in Japan, Ernst & Young ShinNihon, was fined {{JPY|2.1 billion}} ({{USD|17.4 million}}) for failing to spot irregularities since 2008 while auditing its client [[Toshiba]], which was Japan's worst accounting scandal in years. The firm was also suspended from taking up new business for three months. An official from Japan's [[Financial Services Agency]] (FSA) described that "there was a grave breach of duty". The firm's CEO and chairman, Koichi Hanabusa stepped down the following month to take responsibility and monthly salaries for 19 employees were cut from 20 per cent to 50 per cent.<ref name=ReutersToshiba>{{cite news|last1=Uranaka|first1=Taiga|last2=Wada|first2=Takahiko|title=Japan fines Ernst & Young affiliate $17.4 million over Toshiba audit|url=https://www.reuters.com/article/us-toshiba-accounting-ernst-idUSKBN0U505S20151222|access-date=29 December 2016|work=Reuters|date=22 December 2015}}</ref><ref name=FTShinNihon>{{cite news|last1=Inagaki|first1=Kana|title=EY's Japanese unit reprimanded by regulator over Toshiba audits|url=https://www.ft.com/content/e6357710-a89a-11e5-955c-1e1d6de94879 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/e6357710-a89a-11e5-955c-1e1d6de94879 |archive-date=10 December 2022|access-date=29 December 2016|work=The Financial Times|date=22 December 2015|url-access=subscription}}</ref> In an unusual move, the FSA publicly named seven accountants involved in the audit who were accused of failing to exercise due caution and signing off on false financial documents.<ref name=FTShinNihon/> The FSA also said the "firm’s operations were deeply improper".<ref name=FTShinNihon/> ShinNihon, at the time, was Japan's biggest accounting firm, with 3,500 certified accountants and 4,000 clients.<ref name=ReutersToshiba/> ShinNihon audited about 960 listed companies in Japan, the most among the [[Big Four accounting firms|Big Four]], as reported in 2015.<ref name=NikkeiEYSN>{{cite news|title=Top accounting firms eyed to replace auditor|url=http://asia.nikkei.com/Business/Companies/Top-accounting-firms-eyed-to-replace-auditor|access-date=6 May 2017|work=Nikkei Asian Review|date=12 December 2015}}</ref> ShinNihon had audited Toshiba for over 60 years and the firm had around 70 staff serving Toshiba before the accounting scandal broke.<ref name=NikkeiEYSN/>

In 2017, Ernst & Young Baltic, member of the EY network, was accused of using the emission assumptions of highly polluting EURO II trucks (manufactured before 2001) to falsely increase the socio-economic benefits of the new railway for the period 2026–2055 by 3 billion euros in the [[Rail Baltica]] Cost-Benefit Analysis. The total mistakes amounted to more than 4 billion euros and constituted 20% of the total socio-economic benefit of the Rail Baltica.<ref>{{cite book |date=2018 |title=Major mistakes in Rail Baltica Cost-Benefit Analysis made by Ernst & Young Baltic |isbn=978-1985198630 |url=http://avalikultrailbalticust.ee/PDF/ARB_MMistakesRB_CBA_by_EY.pdf |last1=Humal |first1=Priit |last2=Lambot |first2=Karli |last3=Paul |first3=Illimar |publisher=CreateSpace Independent Publishing Platform |archive-url=https://web.archive.org/web/20180128041756/http://avalikultrailbalticust.ee/PDF/ARB_MMistakesRB_CBA_by_EY.pdf |archive-date=2018-01-28 |url-status=dead }}</ref> Correction of the mistakes made the project unfeasible. EY has refused to provide any comments to the media regarding the public accusations.<ref>{{Cite web |url=http://jv.err.ee/arhiiv/2017-000010-0918_0001_XHD_AKTUAALNE-KAAMERA.mp4#t=820 |title=Estonian Public Broadcasting News 18 September 2017 |access-date=12 March 2018 |archive-date=13 March 2018 |archive-url=https://web.archive.org/web/20180313093908/http://jv.err.ee/arhiiv/2017-000010-0918_0001_XHD_AKTUAALNE-KAAMERA.mp4#t=820 |url-status=dead }}</ref>

== Controversies ==
=== Sexist training program ===
In October 2019, ''[[HuffPost]]'' broke a story about a  New Jersey "Power-Presence-Purpose" training seminar purportedly to empower female employees, but which was, as characterized by ''HuffPost'', "full of out of touch advice".<ref>{{cite news |last1=Peck |first1=Emily |title=Women At Ernst & Young Instructed On How To Dress, Act Nicely Around Men |url=https://www.huffpost.com/entry/women-ernst-young-how-to-dress-act-around-men_n_5da721eee4b002e33e78606a |access-date=17 March 2023 |work=HuffPost |date=21 October 2019 |language=en}}</ref> Women were told to concentrate on their appearance, not to show too much skin, and not to speak too much. One participant said it was basically a "women bashing" exercise. "You have to offer your thoughts in a benign way...You have to be the perfect [[Stepford wife]]... It felt like they were being turned into someone who is super-smiley, who never confronts anyone" she said.<ref>{{Cite news|url=https://www.huffpost.com/entry/women-ernst-young-how-to-dress-act-around-men_n_5da721eee4b002e33e78606a|title=Women at Ernst & Young Instructed on How To Dress, Act Nicely Around Men|last=Peck|first=Emily|date=2019-10-21|work=Huffington Post|access-date=2019-10-22|language=en-AU}}</ref> In 2021, EY agreed to pay the state of New Jersey $100,000 and set up a $500,000 scholarship following its investigation of the program to resolve claims EY broke state law against discrimination.<ref>{{cite web|url=https://www.nj.com/hudson/2021/06/ey-reaches-deal-with-state-over-sexist-training-video-for-female-employees.html |title=EY reaches deal with state over sexist training video for female employees |publisher=nj.com |date=2021-06-02 |accessdate=2022-06-29}}</ref>

=== Working rights ===
In April 2021, EY's second-year auditor staff in their Barcelona office sent an email to their line managers to complain about the long hours that they had to work, which were sometimes reaching 84 working hours per week.<ref>{{cite web|url=https://elpais.com/economia/2021-04-27/auditores-de-ey-en-espana-denuncian-ante-sus-superiores-semanas-de-trabajo-de-84-horas-es-insostenible.html|title=Auditores de EY en España denuncian ante sus jefes semanas de trabajo de 84 horas: "Es insostenible"|newspaper=El Pais|date=27 April 2021 |access-date=27 April 2021}}</ref>

===Elizabeth Broderick & Co. Culture Review===

In July 2023, an independent culture review by the former Australian sex discrimination commissioner [[Elizabeth Broderick]] was released after being commissioned by EY following the suicide of an auditor in the Sydney office in August 2022. Over 4,500 participants from the Australian and New Zealand EY offices participated through online surveys, interviews, written submissions, and group listening sessions. The report revealed that 15% of EY employees have experienced instances of either bullying, sexual harassment, or racism. The report also detailed the long working hours, with approximately two in five employees considering quitting due to long work hours and 46% of respondents reporting that their health has been negatively affected due to the long hours. The culture review revealed that over 31% of EY employees worked over 51 hours per week routinely, and 11% of EY employees working over 61 hours per week routinely.<ref>{{cite web|url=https://www.ey.com/en_au/elizabeth-broderick-and-co-independent-review-into-workplace-culture-at-ey|title=Elizabeth Broderick & Co. independent review into workplace culture at EY|publisher=ey.com|date=27 July 2023|access-date=August 5, 2023}}</ref>

In April 2024, EY apologized for its workplace culture and said it has started a "time-owed-in-lieu pilot" and is "making strong progress" on other report recommendations.<ref>{{Cite web |last=Wilson |first=Nick |date=2024-04-22 |title=EY apologises for workplace culture following Senate grilling |url=https://www.accountingtimes.com.au/profession/were-selling-time-professional-services-and-overwork-culture |access-date=2024-12-31 |website=www.accountingtimes.com.au |language=en-gb}}</ref>

== Sponsorships ==
Ernst & Young is involved in many sponsorships, including its ''[[Ernst & Young Entrepreneur of the Year Award|World Entrepreneur of the Year Award]]'' program, held in over 60 countries.<ref>[http://www.ey.com/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/US_EOY_Article_FAQ EY Entrepreneur Of The Year] {{webarchive |url=https://web.archive.org/web/20120714073340/http://www.ey.com/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/US_EOY_Article_FAQ |date=14 July 2012 }}. Ernst & Young. Retrieved 9 July 2011.</ref>

The awards are an annual award program sponsored by Ernst & Young in recognition of [[entrepreneurship]]. 
Founded in 1986 in [[Milwaukee]] as a single award, the program now runs in all 50 U.S. states and in more than 60 countries.<ref name="EYeoty">{{cite web |title=EY Entrepreneur Of The Year programs |url=https://www.ey.com/en_gl/weoy/contacts |access-date= |publisher=Ernst & Young |location=United States}}</ref>

At the country and territory levels, programs begin with nomination<ref>{{Cite web |title=Entrepreneur Of The Year nomination |url=https://eoy.ey.com/home |access-date=2023-08-07 |website=eoy.ey.com}}</ref> of entrepreneurs who demonstrate specific criteria. The award may be given to multiple individuals per year. For example, in the U.S. and other countries, there are multiple regional and category winners, spanning fields such as for retail and consumer products, technology, family business, energy, chemical and mining, food products and services, real estate, hospitality, and construction, financial services, digital media, and transformational ventures.<ref>{{cite web |url=http://www.ey.com/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/MET-NY_Article_award_recipients |title=Meet NY award recipients |work=Entrepreneur of the Year Awards |publisher=Ernst & Young |date=2013 |location=United States }}</ref> However, in each country, only one company and its leader(s) are recognized as the overall award recipient.<ref>{{cite web |url=http://www.ey.com/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/US_EOY_2014-winners |title=US winners |work=Entrepreneur of the Year Awards |publisher=EY |date=2014 |location=United States |url-status=dead |archive-url=https://web.archive.org/web/20150416053832/http://www.ey.com/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/US_EOY_2014-winners |archive-date=2015-04-16 }}</ref>

Since 1986, over 10,000 founders, CEOs, and business leaders have received awards.<ref name="hof">{{cite web|url=http://www.ey.com:80/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/US_EOY_Article_EOY_HOF|archive-url=https://web.archive.org/web/20160422161525/http://www.ey.com:80/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year/US_EOY_Article_EOY_HOF|url-status=dead|archive-date=22 April 2016|title=Visit the Hall of Fame|work=Entrepreneur of the Year Awards|publisher=EY|location=United States|access-date=9 June 2016}}</ref>

=== Art and media ===
EY UK sponsors exhibitions of works by famous artists, such as [[Cézanne]], [[Picasso]], [[Pierre Bonnard|Bonnard]], [[Monet]], [[Auguste Rodin|Rodin]] and [[Renoir]]. The most recent of these was ''Maharaja: the Splendour of India's Royal Courts'' at the [[Victoria and Albert Museum]].<ref>[http://www.vam.ac.uk/microsites/maharaja/ "Maharaja: The Splendour of India's Royal Courts"]. [[Victoria and Albert Museum]], London, England. 20 July 2009. Retrieved 9 July 2011.</ref>

In addition, EY sponsors the educational children's show ''[[Cyberchase]]'' on [[PBS Kids]] under the [[PBS Kids GO!]] television brand, in an effort to improve [[mathematics]] literacy in children.<ref>[http://pbskids.org/cyberchase Cyberchase – PBS Kids] Official PBS Kids website with corporate sponsorships.</ref>

EY in the UK sponsors the [[ITEM club]].<ref>[http://www.prnewswire.co.uk/cgi/news/release?id=44555 Ernst & Young Item Club appoints new Chief Economist]. Prnewswire.co.uk 16 June 1997. Retrieved 9 July 2011.</ref>

EY in the UK has set up the [[National Equality Standard]] (NES), an initiative developed for business which sets clear equality, diversity and inclusion (EDI) criteria against which companies are assessed. The [[National Equality Standard]] (NES) is currently the only industry recognized national standard for EDI in the UK.<ref>{{cite web|url=http://www.thehrdirector.com/business-news/diversity_and_equality/untitled-resource/ |title=Hope that National Equality Standard (NES) will turn tide for D&I |publisher=The HR Director magazine |url-status=dead |archive-url=https://web.archive.org/web/20131020202134/http://www.thehrdirector.com/business-news/diversity_and_equality/untitled-resource/ |archive-date=20 October 2013 |df=dmy }}</ref>

EY in the UK has set up ''EY Foundation'', a new UK charity set up to support young people and entrepreneurs.<ref>{{cite web|url=http://goodnewsshared.com/ey-thanked-at-ey-foundation-launch/ |title=EY Thanked at Launch of EY Foundation|date=2 September 2014 |access-date=14 October 2014}}</ref>

=== Sports ===
On 8 September 2011, [[Rio 2016]] made the announcement that EY would be an official sponsor of the ''[[2016 Summer Olympics]]'' to be held in Brazil, as the exclusive provider of professional services – consulting and auditing – for Rio 2016 organizing committee.<ref>{{cite web |url=http://www.aroundtherings.com/articles/view.aspx?id=37832 |title=Rio 2016 Unveils Ernst & Young as Tier 2 Sponsor |publisher=Aroundtherings.com |access-date=8 December 2011 |archive-date=25 October 2011 |archive-url=https://web.archive.org/web/20111025074821/http://www.aroundtherings.com/articles/view.aspx?id=37832 |url-status=dead }}</ref>

EY was an Official Partner to the [[2012 Ryder Cup|2012]] and the [[2014 Ryder Cup]]s,<ref>{{cite web|url=http://www.ey.com/GL/en/Newsroom/News-releases/Ernst---Young-announces-partnership-with-The-2012-European-Ryder-Cup|title=EY announces partnership with The 2012 European Ryder Cup Team and The 2014 Ryder Cup|publisher=ey.com|access-date=27 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20130103173632/http://www.ey.com/GL/en/Newsroom/News-releases/Ernst---Young-announces-partnership-with-The-2012-European-Ryder-Cup|archive-date=3 January 2013|df=dmy-all}}</ref> it partners with the [[British and Irish Lions]].,<ref>{{cite web|url=http://lionstour.ey.com/|title=EY – 2017 British & Irish Lions Tour to New Zealand|last=EY|website=lionstour.ey.com|access-date=2017-06-22|archive-url=https://web.archive.org/web/20170630182012/http://lionstour.ey.com/|archive-date=30 June 2017|url-status=dead}}</ref> and it has a longstanding relationship with the [[2011 Tour de France]] winner [[Cadel Evans]].<ref>{{cite web|url=http://www.ey.com/AU/en/Newsroom/News-releases/Ernst-and-Young-renews-relationship-with-Cadel-Evans |title=Ernst & Young renews relationship with Cadel Evans |access-date=17 October 2014 |url-status=dead |archive-url=https://web.archive.org/web/20131109230833/http://www.ey.com/AU/en/Newsroom/News-releases/Ernst-and-Young-renews-relationship-with-Cadel-Evans |archive-date=9 November 2013 |df=dmy }}</ref>

In April 2019, EY announced a two-year-long collaboration with [[USA Rugby]], where EY would act as their Official Principal Partner. The partnership was focusing on digital and technological transformations, as well as innovating and growing the game in the US, while specifically mentioning an overhaul of USA Rugby's diversity and inclusiveness program.<ref>{{Cite web |url=https://www.sportstravelmagazine.com/usa-rugby-names-ey-as-official-principal-partner/|title=USA Rugby Names EY as Official Principal Partn|publisher=Sport Travel Magazine|date=3 April 2019|access-date=4 November 2022}}</ref>

==See also==
{{Portal|Companies}}
* [[Accounting networks and associations]]
* [[Big Four accounting firms]]
* [[Clarkson Gordon & Co|Clarkson Gordon & Co (Canada)]]

==References==
{{Reflist|30em}}

==External links==
{{Commons category-inline}}
* {{Official website|https://www.ey.com}}
{{Ernst &#38; Young}}
{{Big4}}
{{Consulting}}
{{Authority control}}
{{wirecard}}

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