Definition
EY, formerly known as Ernst & Young, is a global network of professional services firms. Recognized as one of the Big Four accounting firms, it provides a range of services including assurance (audit), tax, transaction advisory, and consulting. Originating from separate firms founded by Alwin C. Ernst and Arthur Young in the early 20th century, the companies merged in 1989 to form Ernst & Young. In 2013, the firm rebranded itself to EY. The firm operates in more than 150 countries and employs approximately 190,000 people globally.
Examples of Services Provided by EY
- Assurance Services: EY provides robust audit services to help clients ensure accuracy in their financial reporting and maintain regulatory compliance.
- Tax Services: EY assists clients with tax planning, compliance, and consulting to optimize their tax position and manage associated risks.
- Transaction Advisory Services: The firm offers advice on mergers, acquisitions, fund-raisings, and initial public offerings (IPOs).
- Advisory Services: EY offers consulting services that include performance improvement, risk management, IT advisory, and strategy consultations.
Frequently Asked Questions (FAQs)
What are the Big Four accounting firms?
The Big Four accounting firms are Deloitte, PricewaterhouseCoopers (PwC), KPMG, and Ernst & Young (EY). These firms are the largest professional services networks in the world, providing audit, assurance, tax, consulting, advisory, actuarial, corporate finance, and legal services.
Why did Ernst & Young change its name to EY?
In 2013, Ernst & Young rebranded to EY in an effort to update its image, streamline its branding, and reflect its evolution as a global firm. The simplified name aims to enhance global consistency and ease of operation.
What services does EY provide?
EY offers a range of services, including assurance (audit), tax services, transaction advisory services, and consulting. These help clients navigate complex regulations, optimize tax positions, manage risks, and improve overall business performance.
Where is EY headquartered?
EY has its global headquarters in London, United Kingdom.
How large is EY?
EY operates in more than 150 countries and employs approximately 190,000 professionals worldwide.
Related Terms
Big Four
The term “Big Four” refers to the four largest professional services networks in the world: Deloitte, PwC, KPMG, and EY.
Assurance Services
Assurance services involve the auditing of financial reports to ensure their accuracy and compliance with applicable standards.
Tax Services
Tax services include tax planning, compliance, and consulting, which help organizations manage their tax obligations and optimize their tax-related decisions.
Advisory Services
Advisory services encompass consulting activities that help businesses improve operations, manage risks, and develop strategies.
Online References
Suggested Books for Further Studies
- The Big Four: A Look at How the Big Accounting Firms Dominate the Market by Stuart Kells
- Financial Accounting by Weygandt, Kimmel, and Kieso - This comprehensive textbook provides extensive accounts of professional auditing services.
- Taxation of Individuals and Business Entities by Spilker et al. - Covers tax theories and their application for various entities.
Accounting Basics: “EY (Ernst & Young)” Fundamentals Quiz
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