Deloitte denies media reports of restructuring plans

Offices of Deloitte are seen in London, Britain September 25, 2017. REUTERS/Hannah McKay/Files

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June 9 (Reuters) – Deloitte, one of the “big four” accountancy firms, said on Wednesday night that media reports that the firm was considering splitting off its global audit and advisory practices were “categorically false”.

News of the split, reported by The Wall Street Journal earlier today, came weeks after another Big Four accounting firm, Ernst & Young, said it was evaluating strategic options to improve quality of the audit. Read more

“As previously stated, we remain committed to our current business model,” a Deloitte spokesperson told Reuters.

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According to the WSJ report, Deloitte has reached out to investment bankers at Goldman Sachs Group Inc (GS.N) and talks are still at a very early stage.

Goldman and JPMorgan Chase & Co (JPM.N) are advising Ernst & Young on its possible restructuring, the WSJ reported, citing people familiar with the matter.

KPMG, another Big Four accounting firm, declined to comment on its business plans.

PricewaterhouseCoopers is “fully committed to our strategy that we announced last year…has no intention of changing course,” a company spokesman told Reuters.

PricewaterhouseCoopers announced a new global strategy last year, which included increased investments to support audit quality.

For years, the four accounting giants have been under regulatory scrutiny over fears that their advisory service offerings could undermine audit quality and potentially create conflicts of interest.

Britain last month introduced reforms to big business audits, responding to recommendations from three government-sponsored reviews on improving auditing in a market dominated by the Big Four. Read more

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Reporting by Niket Nishant and Maria Ponnezhath in Bengaluru; Editing by Uttaresh.V and Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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