Deloitte weighs split of auditing and consulting businesses – WSJ

(Reuters) – Deloitte is exploring a plan to separate its world audit and consulting practices, the Wall Road Journal reported on Wednesday, citing individuals accustomed to the matter.

The corporate, one of many Large 4 accounting companies together with Ernst & Younger, PricewaterhouseCoopers and KPMG, didn’t instantly reply to a Reuters request for remark.

Deloitte reached out to funding bankers at Goldman Sachs Group Inc, the report stated, and talks are nonetheless at a really early stage.

If profitable, the break up could be one of many greatest shakeups within the auditing trade.

For years, the 4 accounting giants have been beneath the regulatory scanner over worries that their advisory service choices may impair audit high quality and doubtlessly create conflicts of curiosity.

Ernst & Younger has additionally stated it was evaluating choices to enhance audit high quality.

(Reporting by Niket Nishant in Bengaluru; Enhancing by Devika Syamnath)