Ernst & Young

Historical development and mergers

The firm's lineage traces back to 1849 with the founding of Harding & Pullein in England, which evolved into Whinney, Smith & Whinney by 1894. In North America, Ernst & Ernst was founded in Cleveland, Ohio in 1903 by Alwin C. and Theodore Ernst, while Arthur Young & Co. was established in Chicago in 1906 by Scottish accountant Arthur Young. A decade later, in 1989, Ernst & Whinney merged with Arthur Young & Co. to form Ernst & Young, creating one of the world's largest accounting firms at the time. The firm expanded its consulting practice aggressively during the 1980s and 1990s, but growing regulatory concerns over conflicts of interest between audit and consulting services led to a major divestiture.

In May 2000, Ernst & Young became the first of the major firms to fully separate its consulting practice, selling it to French IT company Capgemini for $11 billion. Following the collapse of Arthur Andersen in 2002 due to the Enron scandal, Ernst & Young absorbed a significant number of its former clients, though it did not take on new clients from Andersen's UK, Chinese or Dutch practices. The firm continued to grow through strategic acquisitions, such as the Brazilian firm Terco in 2010 and the global strategy consultancy The Parthenon Group in 2014, which was rebranded as EY-Parthenon. A major rebranding occurred in 2013 when the organization officially changed its name from Ernst & Young to EY, adopting the tagline "Building a better working world". That same year, EY was hired by the Vatican to review its finances and it also acquired all operations of KPMG Denmark, including 150 partners and 1,500 employees across 21 offices.

In November 2022, EY acquired the Sydney-headquartered data and analytics specialists Bridge Business Consulting. In June 2025, EY launched EY Studio+, combining its design, marketing, sales and customer-experience technology services into a business with approximately 7,000 employees. In 2015, EY opened its first global Security Operations Centre in Thiruvananthapuram, Kerala in India. It coincidentally invested $20 million over 5 years to combat the increasing threat of cybercrimes.

Global structure and operations

EY operates as a network of member firms that are separate legal entities, coordinated by the UK-based Ernst & Young Global Limited. As of 2026, the network spans more than 700 offices in over 150 countries and territories with approximately 406,000 professionals. The firm is organized geographically into three main Areas: the Americas. Asia-Pacific. And Europe, Middle East, India and Africa (EMEIA). In 2018, EY merged its CIS and CEE regions to form a CESA block. A significant restructuring under global chair and CEO Janet Truncale took effect on 1 July 2025, consolidating EY's global operational structure from 18 geographic regions down to 10. These 10 regions now function within the three overarching geographic Areas, aiming to streamline management and enhance collaboration across the global network. This reorganization was part of a broader effort to simplify the firm's complex international operations following the failed Project Everest split.

The firm's service offerings are comprehensive and have evolved significantly. Its principal service lines are Assurance, Consulting, Strategy and Transactions, and Tax. Assurance includes financial audit, forensic services, and Climate Change and Sustainability Services (CCaSS). The Tax practice covers business tax, international tax, and tax technology. Consulting comprises business, technology and people advisory services. A key division is Strategy and Transactions, which operates under the EY-Parthenon brand. In March 2025, EY consolidated its entire Strategy and Transactions practice under the EY-Parthenon brand, expanding it from about 9,000 professionals to more than 25,000 across 150 countries. EY also offers Managed Services, providing ongoing support in finance, cybersecurity and technology, and EY Private, which serves entrepreneurs and family-owned businesses. The firm's Core Business Services unit handles functions like business development, marketing, legal and risk management.

Project Everest and the 'All in' strategy

In May 2022, internal plans dubbed "Project Everest" were reported, proposing a split of EY's accounting and advisory divisions into two separate, publicly traded companies. The plan involved an initial public offering for the consulting business, with proceeds used to compensate partners at the new audit firm. Significant internal obstacles emerged, including concerns over how to allocate the firm's substantial debt, much of which was owed to former partners and characterized as an unfunded pension plan. On 5 September 2022, EY announced that partners would vote on the split, though member firms in China, Hong Kong, Macau and Israel stated they would not split, and rival firms like KPMG and Deloitte said they did not intend to follow EY's lead. By March 2023, the US leadership announced a pause amid internal debate over how to proportion its tax service line between the proposed new companies. Project Everest was officially cancelled in April 2023 after the US firm withdrew its support, ending a process that had cost EY approximately $600 million in preparation and planning.

Following the collapse of Project Everest, new global chair and CEO Janet Truncale, who succeeded Carmine Di Sibio in July 2024, introduced a new strategic direction called "All in". This strategy abandoned the separation plan and instead reaffirmed EY's commitment to its integrated model of combined audit and consulting services. The "All in" approach emphasizes greater collaboration across the global network and targeted investment in growth areas such as business transformation, managed services, sustainability and artificial intelligence. This shift consolidated the firm's structure and redirected focus towards internal cohesion and technological advancement, including the expansion of its EY.ai artificial intelligence platform, which contributed to consulting revenue growth of US$16.4 billion in the 2025 fiscal year.

Notable audit disputes and regulatory actions

EY has been involved in numerous high-profile audit failures and accounting scandals over the decades, leading to significant regulatory fines and reputational damage. Key cases include its audits of Bank of Credit and Commerce International (1991), Cendant (1998), Lehman Brothers (2010), and more recently, German fintech Wirecard AG (2020). In the Wirecard case, EY failed to uncover $2 billion in missing funds over several years, leading to a lawsuit and a German parliamentary investigation that found serious shortcomings in the audits. Similarly, in 2020, EY did not identify $300 million in fabricated sales during its audit of Luckin Coffee and $5 billion in undisclosed debt at NMC Health and Finablr. The firm has also faced criticism for its role in auditing companies like WeWork prior to its failed 2019 IPO and for audit quality issues in China where papers can be withheld under state secrecy laws.

EY has been involved in many accounting scandals including Bank of Credit and Commerce International, Lehman Brothers, Wirecard, Luckin Coffee and NMC Health. In 2004, the firm was barred by the SEC from accepting new publicly traded audit clients for six months. In 2008, EY reached settlements including a fine of $8.5 million related to its audit of Bally Total Fitness. In September 2016, the SEC fined EY US $9.3 million for multiple failures including an auditor's romantic involvement with a client.

• 2004: Barred by the SEC from accepting new public audit clients for six months over a conflict of interest with client PeopleSoft.
• 2008: Reached a settlement with the SEC, including an $8.5 million fine, over accounting fraud in the audit of Bally Total Fitness.
• 2016: Fined $9.3 million by the SEC for auditor independence failures, including romantic relationships between auditors and clients.
• 2016: Settled with the SEC for failing to detect financial statement fraud at Weatherford.
• 2020: A former partner was awarded $10.8 million by the High Court in London for ethical misconduct in the Kaloti Jewellery International audit.
• 2021: EY US agreed to pay $10 million to settle SEC charges over independence misconduct to secure Sealed Air as a client.
• 2021: The UK's Financial Reporting Council fined EY UK £3.5 million for failures in its 2017 audit of Stagecoach Group.

EY Hong Kong resigned from the audit of Standard Water Ltd when it emerged the audit had been effectively outsourced to the affiliate in mainland China. In 2013, a court case involved EY's quality and risk management leader for Greater China testifying he was not sure of a formal agreement between the two EY entities. In 2020, a London High Court ruling awarded $10.8 million to a whistleblower partner over ethical misconduct in the audit of Kaloti Jewellery International. Companies like Mozilla and Symantec stopped accepting specific WebTrust audits from EY offices in Hong Kong, Korea and Brazil in 2016 and 2017 due to deficiencies.

Service lines and business focus

EY's service portfolio is organized into several key practice areas that cater to a diverse global clientele. The Assurance practice is foundational, encompassing financial statement audits, forensic and integrity services, and technology risk assurance. A growing component is its Climate Change and Sustainability Services (CCaSS), which advises clients on environmental, social and governance (ESG) reporting, climate risk and sustainable finance. The Tax practice provides a full range of services including business tax compliance, international tax planning, transaction tax advice and tax technology solutions. The Consulting practice is divided into Business Consulting, Technology Consulting and People Advisory Services, helping clients with operational transformation, digital implementation and human resources strategies. In 2017, the Financial Oversight and Management Board for Puerto Rico retained EY as a financial adviser during the territory's debt restructuring under the PROMESA process.

The Strategy and Transactions practice, operating under the EY-Parthenon brand, is a major focus for growth. It provides corporate strategy, mergers and acquisitions advisory, due diligence, valuation and restructuring services. The March 2025 consolidation under the EY-Parthenon brand significantly expanded its reach and resources. Managed Services represents another strategic area, offering clients ongoing, outsourced services in finance, tax, risk, cybersecurity and technology operations, blending professional expertise with standardized processes. For private clients, EY Private delivers tailored assurance, tax and advisory services to entrepreneurs, family businesses and family offices. The firm also invests heavily in technology, notably through its EY.ai platform, which integrates artificial intelligence across its consulting offerings. In 2025, the Financial Times reported that demand for AI consulting helped drive growth in EY's consulting division, which generated US$16.4 billion in revenue that fiscal year, showing the importance of technology to its business model.

Corporate culture, recognition and investments

EY publicly states its purpose is "building a better working world", with the aim of creating long-term value for clients, people and society while fostering trust in capital markets. Its stated corporate values include integrity, respect, teaming and inclusiveness, codified in a Global Code of Conduct that outlines standards for professional integrity, objectivity, independence and data protection. The firm has received notable workplace recognition, having been continuously ranked on Fortune magazine's list of the 100 Best Companies to Work For for 25 years, a longer streak than any other accounting firm. As of 2023, EY was ranked as the seventh-largest privately owned organization in the United States. Despite these accolades, EY has repeatedly faced internal and external criticism regarding its work culture, training programs and hiring practices, with reports highlighting systemic issues and high-pressure environments that have come under scrutiny.

In July 2024, Janet Truncale succeeded Carmine Di Sibio as EY's global chair and chief executive. Following the collapse of Project Everest, Truncale introduced a strategy known as "All in", which retained EY's combined audit and consulting structure. The strategy emphasizes greater collaboration across its global network and investment in areas including business transformation, managed services and sustainability. The firm has expanded its use of artificial intelligence across its consulting business through its EY.ai platform.

• 2015: Opened its first global Security Operations Centre in Thiruvananthapuram, Kerala, India, with a $20 million investment over five years.
• 2017: Opened a Digital Security Operations Center in Muscat, Oman, as part of a $10 million investment to cover the EMEIA region.
• 2017: Announced an executive support centre in Tucson, Arizona, creating 125 new jobs.
• 2018: Opened a $4.4 million professional services centre in Louisville, Kentucky, creating 125 jobs.
• 2018: Announced an IT and tech hub in Nashville, Tennessee, planned to create 600 regional jobs.
• 2025: Launched the EY.ai platform to expand the use of artificial intelligence across its consulting business.

EY's services include Managed Services, which provides ongoing services in areas including finance, tax, risk, cybersecurity, and technology. The firm has transformed its business model over the last decade to offer a more comprehensive scope of services. This transformation is attributed to intensified competition in professional services and new markets like investment banking and strategic consultancy. The firm aims to build trust and confidence in capital markets while facing ongoing challenges related to audit quality and regulatory compliance.

Financial and operational milestones

EY was formally created as Ernst & Young through a merger in 1989, though its oldest predecessor firms were founded in 1849. In 2000, Ernst & Young was the first of the Big Five firms to fully separate its consulting practices via a sale to Capgemini for $11 billion. In 2013, the firm officially changed its brand from Ernst & Young to EY. In 2014, EY acquired global strategy consulting firm The Parthenon Group. Preparing and planning for the failed Project Everest split cost EY $600 million.

The Wall Street Journal reported in May 2022 that the firm might split its accounting and advisory divisions, a plan referred to internally as "Project Everest". The firm cancelled Project Everest as the US portion of the firm withdrew its support for the split in April 2023. Preparing and planning for the split cost EY $600 million. The subsequent "All in" strategy emphasizes integrated growth and technological investment. The firm continues to manage complex challenges of audit quality and client service.

Questions about Ernst & Young

How large is EY and where is it headquartered?

EY is one of the world's largest professional services networks, with approximately 406,000 employees as of 2026. It operates from more than 700 offices in over 150 countries and territories globally. The network is coordinated by Ernst & Young Global Limited, a UK company limited by guarantee that is headquartered in London, England. In Canada, EY has a significant presence with offices in major cities, serving a wide array of clients across the country.

What are EY's main service areas?

EY's principal service lines are Assurance, Tax, Consulting, and Strategy and Transactions. Assurance includes financial audit and sustainability services. Tax covers business, international and transaction tax. Consulting involves business, technology and people advisory. Strategy and Transactions, operated under the EY-Parthenon brand, provides merger, acquisition and corporate strategy services. The firm also offers Managed Services for ongoing support in areas like cybersecurity and finance, and has a dedicated practice called EY Private for entrepreneurs and family businesses.

What was Project Everest and why did it fail?

Project Everest was an internal plan, revealed in 2022, to split EY into two separate companies: one for auditing and one for consulting and advisory work. The consulting arm was to undertake an initial public offering to fund partner payouts at the new audit firm. The plan faced major obstacles, including disputes over how to allocate the firm's substantial debt and how to divide its tax practice. After costing about $600 million in preparation, the split was cancelled in April 2023 when the US member firm withdrew its support, leading EY to abandon the separation entirely.

Has EY been involved in any major scandals?

Yes, EY has been implicated in several major audit failures and accounting scandals. Notable cases include its audits of Lehman Brothers before the 2008 financial crisis, German payment processor Wirecard where $2 billion went missing, and Luckin Coffee which had fabricated sales. These and other cases have resulted in significant regulatory fines from bodies like the U.S. Securities and Exchange Commission and the UK's Financial Reporting Council. The firm has repeatedly faced criticism and legal action over the quality and independence of its audit work.

What does EY stand for and when did it change its name?

EY stands for Ernst & Young. The firm was formally created as Ernst & Young through a merger in 1989, which combined Ernst & Whinney and Arthur Young & Co. In 2013, the organization officially changed its brand name from Ernst & Young to EY, introducing the tagline 'Building a better working world'. This rebranding reflected its evolution as a global professional services network. The firm's oldest predecessor firms date back to 1849. Today, EY operates as a network of member firms under Ernst & Young Global Limited, a UK company headquartered in London.

Who is the current global CEO of EY?

Janet Truncale is the current global chair and chief executive of EY. She succeeded Carmine Di Sibio in July 2024. Following the cancellation of Project Everest, a proposed split of the firm, Truncale introduced a new strategy called 'All in'. This strategy retains EY's combined audit and consulting structure while emphasizing greater collaboration across its global network. Her leadership also involves overseeing a consolidated global structure, which was reorganized from 18 to 10 geographic regions effective 1 July 2025.

Sources and further reading

• Ernst & Young (Wikipedia)
• EY, Canada | Shape the future with confidence (ey.com)

Checked by the Yadude Books desk. Last updated 2026-10-19.