Deloitte denies media reports on restructuring plans

DELOITTE, one of the “Big Four” accounting firms, said late on Wednesday (Jun 8) that media reports about the company exploring a plan to split its global audit and consulting practices are “categorically untrue”.

The news of the split, reported by the Wall Street Journal earlier in the day, came in a few weeks after another Big Four accounting firm Ernst & Young said it was evaluating strategic options to improve audit quality.

“As stated previously, we remain committed to our current business model,” a company spokesperson said in an email to Reuters.

According to the WSJ report, Deloitte reached out to investment bankers at Goldman Sachs Group and talks are still at a very early stage. Goldman and JPMorgan Chase & Co are advising Ernst & Young on its possible restructuring, the report added, citing people familiar with the matter.

KPMG, another “Big Four” accounting firm, declined to comment on its business plans, while PricewaterhouseCoopers did not immediately respond to a Reuters request for comment after business hours.

For years, the 4 accounting giants have been under the regulatory scanner over worries that their advisory service offerings could impair audit quality and potentially create conflicts of interest.

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Last month, Britain set out reforms of big company audits, in response to recommendations from 3 government-sponsored reviews on improving auditing in a market dominated by the Big Four. REUTERS