EY’s Greater China practice, which covers mainland China, Taiwan, Hong Kong, Macau, and Mongolia, has confirmed it will not be taking part in the Big Four firm’s global split.
EY’s China segment said it is “unable to participate” in Big Four accounting firm’s ground-breaking plans to separate the firm’s audit business from its consulting arm.
In a statement, EY’s China segment said it is opting out of the separation plans “in consideration of the business environment and development stage within which EY Greater China Region operates”.
EY’s plans to split its global business into two “distinct, multidisciplinary organisations” is set to come as the biggest shakeup to the Big Four in decades.
The plans come as EY seeks to distance itself from the potential conflicts-of-interest that have plagued the Big Four for years.
The Big Four accountancy firm’s plans will require the support of partners and international regulators in order to progress.
The Greater China region’s decision to opt-out of the global separation plans comes as the firm failed to satisfy Chinese regulators, according to the Financial Times.
Last week, EY said it will start letting its 13,000 global partners vote on the separation plans by the end of this year, with a view to completing the process by early-2023.