Ernst & Young celebrates 15% growth
IFRS and Sarbox work help Big Four firm record results
Increasing regulation and compliance have combined to produce another set of
record results for a Big Four firm, with Ernst &Young reporting a 15% growth
in fee income today.
The firm, fresh from its triumph in the Equitable case, reported profits of
£945m for the financial year ending 30 June 2005. Average profit per partner was
also up, 14% to £561,000.
International Financial Reporting Standards and Sarbanes-Oxley combined to
provide much of the 27% growth in the firm’s business assurance practice.
E&Y’s tax practice, however, grew by just 4% and its transaction advisory
services by 5%.
The overall growth has been replicated across its workforce, which has
expanded by 15% and added 57 new partners.
‘We anticipate that the growth we’ve experienced as a result of our clients’
IFRS and Sox challenges will level off in the current year, although our clients
will no doubt face other regulatory issues,’ said E&Y chairman Nick Land in