July deadline for split unrealistic, says PwC

The world’s largest accountancy firm is sticking to its guns over plan to separate its audit and consulting businesses into two or more separate businesses by the end of the year.

PwC has indicated it might not separate its businesses in emerging markets including Eastern Europe, Latin America and Africa.

A July 1 deadline would have given the firm just three months to achieve separation, a timescale which is likely to viewed by many as unrealistic.A spokesman this week described a 1 July completion as ‘unrealistic’.

PwC’s decision to split followed a crackdown by the US Securities and Exchange Commission on shares in audit clients held by staff and partners at the firm.

KPMG said this week it would press the SEC for a decision on whether the firm can float its consulting arm, while Ernst & young partners are set to back the firm’s decision to sell its consulting arm to Cap Gemini.

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