The giant accounting firms will ride through the credit crunch storm and continue to generate growth through their presence in emerging markets, Ernst & Young chairman Mark Otty has predicted.
Speaking to the FT, Otty said demand for professional services in emerging economies is still strong and that his firm was preparing to invest 'hundreds of millions' in China alone.
'The leaders of our Middle East and India practices have nothing of what we talk about with the credit crunch – its just not a feature in their market places,' Otty said.
With regards to the UK market, Otty said the credit crunch had yet to impact his firm's corporate advisory business.
'The mega deals have slowed down but there are still lots of other deals going on, and those mega deals were not what fuels a business like ours,' Otty said.
Otty said auditors would be challenged over the coming months, as the numbers behind the credit crunch unravelled. He said auditors would have to think hard about how a company reflected its current position and revealed losses incurred.
He was adamant, however, that accounting was not behind the drying up of the credit markets.
'Banks were providing finance to people who shouldn't have got finance. It's as simple as that,' said Otty.
Further reading:
Profile: Mark Otty, chairman at Ernst &Young - Accountancy Age
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