© Reuters. Offices of Deloitte are seen in London, Britain, September 25, 2017. REUTERS/Hannah McKay/Files
(Reuters) – Deloitte, one of the “Big Four” accounting firms, said late on Wednesday 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 https://www.wsj.com/articles/deloitte-exploring-splitting-auditing-consulting-arms-following-ernst-young-11654709024?mod=hp_lead_pos3 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 Inc (NYSE:) and talks are still at a very early stage. Goldman and JPMorgan Chase & Co (NYSE:) are advising Ernst & Young on its possible restructuring, the report added, citing people familiar with the matter.
For years, the four 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.
The other “Big Four” accounting firms PricewaterhouseCoopers and KPMG did not immediately respond to Reuters’ request for a comment after business hours.
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