Ernst & Young

Historical development and mergers

The firm's lineage traces back to predecessor entities founded in the mid-19th century, with the oldest being Harding & Pullein established in England in 1849. That firm was joined the same year by accountant Frederick Whinney and later renamed Whinney, Smith & Whinney in 1894. In the United States, Ernst & Ernst was founded in Cleveland in 1903 by Alwin 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 the fifth largest firm globally, Arthur Young & Co., to form Ernst & Young. The organization rebranded to EY in 2013, adopting the tagline "Building a better working world".

Throughout the 1990s, EY expanded its consulting practice significantly, which drew regulatory scrutiny over potential conflicts of interest with its audit work. In May 2000, EY became the first of the major firms to fully separate its consulting arm, selling it to French IT company Capgemini for $11 billion to create Capgemini Ernst & Young, later renamed back to Capgemini. The firm later rebuilt its consulting capabilities through acquisitions, including the 2014 purchase of The Parthenon Group, which became EY-Parthenon. In the 2000s, EY also absorbed many clients from the collapsed firm Arthur Andersen following the Enron scandal, though it did not take on Andersen's clients in the UK, China, or the Netherlands. The firm expanded geographically, acquiring the Brazilian member firm of Grant Thornton, Terco, in 2010 and all of KPMG Denmark's operations in 2013.

Global structure and operations

EY operates as a network of legally separate member firms under the coordinating entity Ernst & Young Global Limited, a UK company limited by guarantee. As of 2026, the network spans more than 150 countries and territories with over 700 offices. The firm underwent a significant structural reorganization effective 1 July 2025, consolidating its operations from 18 geographic regions down to 10. These 10 regions operate within three broad geographic areas: the Americas, Asia-Pacific, and Europe, Middle East, India and Africa (EMEIA). This restructuring was part of a broader strategy introduced by global chair and CEO Janet Truncale, who succeeded Carmine Di Sibio in July 2024 following the collapse of Project Everest.

The firm's global workforce stood at approximately 406,000 professionals in 2026. EY has consistently ranked on Fortune magazine's list of the 100 Best Companies to Work For, holding a record of 25 consecutive years as of 2023, longer than any other accounting firm. Despite this, the organization has faced internal and external criticism regarding its work culture, training, and hiring practices. The firm's operations are supported by Core Business Services functions encompassing business development, marketing, legal, and risk management. The company has also established specialized global centres, such as a Security Operations Centre in Thiruvananthapuram, India, opened in 2015, and a Digital Security Operations Center in Muscat, Oman, opened in 2017. In 2018, the firm also merged its CIS and CEE regions to create a CESA block covering the former Soviet Union and Eastern Europe.

Service lines and business focus

EY organizes its client services into four principal service lines: Assurance, Consulting, Tax, and Strategy and Transactions. The Assurance practice includes financial audit, forensic services, and Climate Change and Sustainability Services (CCaSS), which covers environmental, social and governance reporting. The Tax service line offers business tax, international tax, compliance, and technology-driven tax transformation. Consulting comprises business, technology, and people advisory services, with a growing emphasis on managed services for ongoing operations in finance, cybersecurity, and technology. Managed Services provides standardized, technology-enabled ongoing support in these areas, combining professional expertise with process efficiency.

The Strategy and Transactions practice operates under the EY-Parthenon brand, which was significantly expanded in March 2025. At that time, EY brought its entire global Strategy and Transactions practice under the EY-Parthenon banner, growing the unit from about 9,000 professionals to more than 25,000 across 150 countries. This practice provides corporate strategy, mergers and acquisitions advice, due diligence, and restructuring services. EY also maintains dedicated service teams for private clients through EY Private, catering to entrepreneurs and family-owned businesses, and for people-related services through its People Advisory Services, which handles HR and workforce mobility.

Technology and artificial intelligence have become central to EY's service delivery. The firm launched its EY.ai platform to integrate AI across its consulting business, and in 2025, its consulting division generated US$16.4 billion in revenue, partly driven by demand for AI-related services. In June 2025, EY also launched EY Studio+, a business combining design, marketing, sales, and customer-experience technology services, employing approximately 7,000 people. The firm's purpose is stated as "building a better working world", with values of integrity, respect, teaming and inclusiveness outlined in its Global Code of Conduct. EY's services aim to create long-term value for clients, people and society while building trust in capital markets, and its Global Code groups principles into working with colleagues and clients, professional integrity, objectivity and independence, and data protection.

Major initiatives and strategic shifts

One of the most significant strategic undertakings in the firm's recent history was "Project Everest", a plan to split EY's audit and advisory businesses into two separate entities. First reported in May 2022, the plan envisioned an initial public offering for the consulting arm to fund the separation and compensate partners at the new audit firm. The project faced substantial internal hurdles, including debates over how to allocate the tax practice and concerns about the division of the firm's debt, much of which was owed to former partners and was characterized as an unfunded pension plan. After a global partner vote was announced in September 2022, the US member firm withdrew its support in April 2023, leading to the cancellation of the split. Member firms in China, Hong Kong, Macau, and Israel had previously stated they would not participate in the split, and rival firms KPMG and Deloitte said they did not intend to imitate EY's plan.

Following the collapse of Project Everest, new global CEO Janet Truncale introduced an "All in" strategy, reaffirming the integrated model of audit and consulting services. This strategy emphasizes greater collaboration across the global network and targeted investment in business transformation, managed services, and sustainability. The firm has also pursued strategic alliances, such as a 2026 announcement of an alliance with Strada to develop integrated global payroll solutions and another with Aaru for behavioural simulation services. EY continues to grow through acquisition, such as the November 2022 purchase of Sydney-based data and analytics firm Bridge Business Consulting. The planning for Project Everest cost EY approximately $600 million before it was abandoned, and the firm's consulting business had been a point of contention since its sale and subsequent rebuild.

Regulatory and audit controversies

EY has been involved in numerous high-profile audit failures and regulatory disputes over the years. Notable cases include its audits of Lehman Brothers before the 2008 financial crisis, the German fintech firm Wirecard where it failed to uncover a $2 billion fraud, and Luckin Coffee where it missed $300 million in fabricated sales. In 2020, EY also failed to identify $5 billion in undisclosed debt at NMC Health and Finablr. Other historical scandals involve clients like Bank of Credit and Commerce International (1991), Cendant (1998), and HealthSouth Corporation (2003). These incidents have led to significant fines and reputational damage.

Regulatory bodies in multiple jurisdictions have sanctioned the firm. In 2004, the U.S. Securities and Exchange Commission barred EY from accepting new publicly traded audit clients for six months due to a conflict of interest with client PeopleSoft. The SEC fined EY US $9.3 million in 2016 for independence failures, including auditors having romantic relationships with clients. In 2021, the UK's Financial Reporting Council fined EY UK £3.5 million for failures in its 2017 audit of Stagecoach Group. The firm has also faced legal settlements, such as a $125 million agreement in 2009 related to the collapse of Australian miner Sons of Gwalia and a $10 million SEC settlement in 2021 over misconduct to secure Sealed Air as a client.

Specific audit quality issues have arisen in different regions. In Hong Kong, EY resigned from the audit of Standard Water Ltd after it emerged the work was effectively outsourced to its mainland China affiliate, raising concerns about regulatory access to audit papers. In 2016, Mozilla and later Symantec stopped accepting WebTrust audits from certain EY member firms due to deficiencies. A 2021 investigation by the German Bundestag found serious shortcomings in EY's Wirecard audits over many years. In 2020, a London high court awarded a whistleblower former partner $10.8 million for ethical misconduct in an audit of Dubai gold refiner Kaloti, though EY later dropped its appeal of the ruling in March 2021. The firm was also fined $8.5 million in 2008 by the SEC over its audit of Bally Total Fitness.

EY in the Canadian context

EY maintains a substantial presence in Canada, offering its full suite of services to Canadian corporations, private businesses, and public sector entities. The firm is involved in major Canadian projects and industries, such as providing services to a leading Canadian food production company and modernizing commercial compliance for the Trans Mountain pipeline expansion using its EY Compliance IQ tool. The firm's Canadian operations contribute to discussions on national economic issues, publishing insights on topics like open banking strategy, the "great wealth transfer" affecting private businesses, and the role of nation-building projects in driving economic growth. EY Canada also announces regional finalists for its Entrepreneur Of The Year awards, as seen in 2026, and hosts events like the Open House for students in major cities.

The firm supports the Canadian entrepreneurial ecosystem through its long-running EY Entrepreneur Of The Year program, which in 2026 named the founder and CEO of Xanadu Quantum Technologies as its Ontario winner and the President and CEO of HyLife as a regional finalist. EY Canada also hosts conferences and networking events aimed at attracting student talent, such as the EY 2026 LEAD Consulting Conference in Toronto. The firm's annual Strategic Growth Forum connects global market leaders with entrepreneurial companies from across the country. EY's Canadian practice is part of the firm's Americas geographic area and operates within the consolidated global structure of 10 regions established in 2025.

Like its global operations, EY Canada emphasizes services enabled by artificial intelligence and data analytics. The firm publishes research on Canadian attitudes towards AI and provides consulting on how businesses can use AI to create value. EY teams in Canada help clients with business transformation, managed services, and sustainability reporting. The firm's integrated service model, retained after Project Everest, allows its Canadian practice to offer combined audit and advisory expertise to clients facing complex challenges in technology adoption, regulatory change, and market disruption. EY's insights for Canadian clients also cover macroeconomic outlooks, investment readiness, and the implications of geopolitical risks on business models.

Questions about Ernst & Young

What does EY stand for and is it still called Ernst & Young?

EY is the current brand name of the professional services network formerly known as Ernst & Young. The organization officially changed its brand from Ernst & Young to EY in 2013, adopting the tagline "Building a better working world". The legal name of the global coordinating entity remains Ernst & Young Global Limited. While the colloquial and brand name is now EY, the historical name remains part of its legal structure and heritage from the 1989 merger of Ernst & Whinney and Arthur Young & Co.

How large is EY globally and in Canada?

As of 2026, EY employs approximately 406,000 people worldwide across more than 700 offices in over 150 countries and territories. The firm reported global revenue of US$57 billion for the 2026 fiscal year. While specific employee counts for Canada are not detailed in the notes, EY has a significant Canadian presence with major offices in cities including Toronto and Vancouver. The firm actively recruits Canadian graduates and hosts national events like the Strategic Growth Forum and the Entrepreneur Of The Year awards.

What are EY's main service areas?

EY's principal service lines are Assurance, Consulting, Tax, and Strategy and Transactions. Assurance includes financial audit and sustainability reporting services. Consulting covers business, technology, and people advisory, including managed services for cybersecurity and finance. Tax services range from compliance to international tax planning. Strategy and Transactions, operating under the EY-Parthenon brand, provides merger advice, due diligence, and corporate strategy. The firm also offers specialized services for private businesses through EY Private and leverages its EY.ai platform for artificial intelligence consulting.

What was Project Everest and why did it fail?

Project Everest was EY's internal plan, revealed in 2022, to split its audit and consulting divisions into two separate businesses. The consulting arm was to conduct an initial public offering to fund the separation. The plan was cancelled in April 2023 after the US member firm withdrew its support. Key obstacles included internal disputes over how to split the tax practice and concerns about allocating the firm's substantial debt, much of which was owed to former partners. Preparing for the split cost EY an estimated $600 million before it was abandoned.

Has EY been involved in any major audit scandals?

Yes, EY has been implicated in several major audit failures. Significant cases include its audit of Wirecard AG, where it failed to detect a $2 billion fraud, and its work for Luckin Coffee, missing $300 million in fabricated sales. Other notable controversies involve Lehman Brothers before its collapse, HealthSouth Corporation, and the UK's Stagecoach Group, which resulted in a £3.5 million fine from the UK regulator. These incidents have led to numerous lawsuits, regulatory fines, and settlements over the years, impacting the firm's reputation.

How does EY support entrepreneurs and private businesses in Canada?

EY supports Canadian entrepreneurs and private businesses primarily through its EY Private service line and the flagship EY Entrepreneur Of The Year program. The Entrepreneur Of The Year award recognizes business leaders across regions in Canada, with the 2026 Ontario winner being the founder of Xanadu Quantum Technologies. EY Private provides tailored assurance, tax, and strategy services to family enterprises and privately held companies. The firm also publishes research and hosts forums on topics relevant to business owners, such as managing the generational transfer of wealth and building enterprise value.

Sources: Wikipedia and current public reporting, checked by the Yadude Books desk. Last updated 2026-10-19.