Ernst & Young LLP has announced an industry-first split of their auditing and consulting functions, dubbed "Project Everest," a radical move that could completely transform the business model for accounting firms. The split still needs final approval from EY Partners, with a vote slated for later this year. The announcement has ignited a fiery debate from the global accounting and business community, with many praising EY for its bold, first-mover split and the potential windfall for EY’s advisory businesses. The division will separate EY’s accountants who audit companies such as Amazon.com Inc., Salesforce.com Inc., Alphabet, Inc. and more, from its faster-rising—and typically more profitable—consulting business. The company’s split would also mark the biggest shake-up in the sector since the 2002 collapse of Arthur Andersen, the auditor that was mired in the Enron scandal and whose downfall reduced the Big Five to the Big Four.

Click the icon for more details