EY India said on Wednesday that it was stopping work on Project Everest, which entailed dividing the firm’s auditing and consulting divisions.”We have been informed that the US executive committee has decided not to move forward with the design of Project Everest. Given the strategic importance of the US member firm to Project Everest, we are stopping work on the project,” EY India said.
The firm said it acknowledged the challenges that came with separating some of its businesses and recognised that more time was needed to make the necessary investments to prepare the businesses for a separation.
“The global executive along with the US executive committee and other member firms, in consultation with the global governance council, will begin taking actions based on what we have learned over the past year, actions that will benefit our businesses today and better prepare us for a new transaction. In parallel, we will also consider how a future organisational separation will serve the interests of all of our businesses,” it said in a statement.
The split of the firm’s auditing and consulting divisions required a nod from partners in several countries, including India. A few days ago, Germany’s accounting watchdog fined EY €500,000 for its handling of audits for Wirecard and banning it from taking on new audits for companies of public interest for two years, according to reports. Last year, the Securities and Exchange Commission levied a $100 million fine on EY after its auditors were caught cheating in the exam to maintain their Certified Public Accountant licence.