B.S. (Bachelor of Science)
Department of Accountancy
This paper aims to address the reasons why Ernst & Young attempted to split their auditing and consulting services, the reasons why the split failed to materialize, and the resulting consequences. Research for the paper involved a literature review of relevant articles and subsequent discussion. This paper concludes that the attempted split was motivated by regulatory concerns regarding auditor independence and profitability gaps between assurance and consulting. This paper also concludes that the split was unsuccessful due to unfavorable economic conditions and the mechanics of partner compensation.
Jovanovich, Jacob, "Ernst & Young’s Attempt to Split Accounting and Consulting Services: An Unsuccessful Endeavor" (2023). Honors Capstones. 1486.