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60-617: [REDACTED] Look up ey in Wiktionary, the free dictionary. EY , Ey , or ey may refer to: Companies [ edit ] Ernst & Young , a global network of financial services firms currently branded EY Eagle Air (Tanzania) (IATA code 1999–2002) Etihad Airways (IATA code since 2003) People [ edit ] Henri Ey , French psychiatrist Elaine Youngs , American beach volleyball player Other uses [ edit ] Ey, an obsolete term for egg . Ey,

120-468: A Spivak pronoun used in place of "he/she" Ey, exayear , SI unit for 1 × 10 year ey (digraph) , in languages -ey (disambiguation) , an English diminutive suffix East York , Ontario ("EY" in an old logo) Executive Yuan , the executive branch of the Republic of China (Taiwan) Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with

180-749: A German fintech payment processing company. This resulted in a lawsuit filed against EY in June 2020. An investigation by the Bundestag revealed in April 2021 that EY's audits of defunct payments group Wirecard suffered from serious shortcomings over a period of years. EY also failed to identify $ 300 million in "fabricated sales" in their 2020 audit of the coffee chain Luckin Coffee and $ 5 billion in "undisclosed debt" at NMC Health and Finablr . In August 2021, EY US agreed to pay US$ 10 million as part of

240-518: A different public company became romantically involved with its chief accounting officer. In October 2016, EY settled with the SEC because they were unable to detect financial statement fraud that was committed by the Weatherford tax department. Weatherford misstated their financial statements by manipulating the income tax line item in their financials. EY was Weatherford's independent auditors when

300-406: A formal disciplinary process" and that "there has been no adverse finding made against EY in respect of the audit of Anglo Irish Bank." In 2009, EY agreed to pay US$ 200m out of court to settle a negligence claim by the liquidators of Akai Holdings. Separately the firm was accused of falsifying and doctoring documents it presented to defend against the negligence claim by Akai's liquidators. In

360-537: A full-time employee. The initiative applied to employees in Hong Kong , Macau and mainland China , where the firm's employees numbered 8,500 in total. In 2010, Ernst & Young acquired Terco, the Brazilian member firm of Grant Thornton . In 2013, the firm officially changed its brand from Ernst & Young to EY , and christened the accompanying tagline: "Building a better working world". Also in 2013,

420-469: A month earlier. These plans were soon abandoned in February 1998, due to several factors ranging from client opposition, antitrust issues, cost problems, and the anticipated difficulty of merging the two diverse firms and cultures. The merger between Price Waterhouse and Coopers & Lybrand, however, went ahead as planned, creating PwC . Ernst & Young expanded its consulting practice heavily during

480-868: A more comprehensive scope of services. This is mainly attributed to an intensified competition in the existing market of professional services, and competition in new markets: investment banking and strategic consultancy. According to the latest published data, the company has the following four main service lines: EY has been involved in many accounting scandals : Bank of Credit and Commerce International (1991), Informix Corporation (1996), Sybase (1997), Cendant (1998), One.Tel (2001), AOL (2002), HealthSouth Corporation (2003), Chiquita Brands International (2004), Lehman Brothers (2010), Sino-Forest Corporation (2011), Olympus Corporation (2011), Stagecoach Group (2017), Wirecard (2020), Luckin Coffee (2020) and NMC Health (2020). In 2004, Ernst & Young

540-431: A network of member firms which are structured as separate legal entities in a partnership, which has 395,442 employees in over 700 offices in more than 150 countries. The firm's current partnership was formed in 1989 by a merger of two accounting firms; Ernst & Whinney and Arthur Young & Co. It was named Ernst & Young until a rebranding campaign officially changed its name to EY in 2013, although this initialism

600-564: A separate lawsuit, a former EY senior partner from 1984 to 1991, Cristopher Ho, and his listed company, Grande Holdings, paid over US$ 100m to Akai creditors to settle Akai's liquidators' claim that Ho conspired with Ting of stripping assets from Akai. Police raided the Hong Kong office and arrested an EY partner who had been an audit manager on the Akai account from December 1997, although audit documents had been doctored dating back to 1994. Akai

660-399: A settlement with the SEC related to charges of auditor independence misconduct perpetrated by several of its partners to secure Sealed Air as a client. In August 2021, UK accounting regulatory Financial Reporting Council (FRC) fined EY UK £3.5 million (US$ 4.8 million) for failing to challenge financial statements in its 2017 audit of UK transport company, Stagecoach Group . In addition,

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720-528: Is a multinational professional services partnership . EY is one of the largest professional services networks in the world. Along with Deloitte , KPMG and PwC , it is one of the Big Four accounting firms . It primarily provides assurance , tax , information technology services (including managed services in areas like Cybersecurity , Cloud , Digital Transformation and AI ), consulting , and advisory services to its clients. EY operates as

780-571: Is often found in former Eastern Bloc countries to differentiate from former state-owned enterprises , but it may be used anywhere in contrast to a state-owned or a collectively owned company. In the United States , a privately held company refers to a business entity owned by private stakeholders, investors, or company founders, and its shares are not available for public purchase on stock exchanges. That contrasts with public companies, whose shares are publicly traded, which allows investing by

840-575: Is one of the most selective strategy consultancies worldwide. In 2015, EY opened its first global Security Operations Centre in Thiruvananthapuram , Kerala in India, and coincidentally invested $ 20 million over 5 years to combat the increasing threat of cybercrimes. In 2017 EY announced it was opening an executive support center in Tucson, Arizona, US, creating 125 new jobs. That same year,

900-728: The Corporations Act 2001 requires publicly traded companies to file certain documents relating to their annual general meeting with the Australian Securities and Investments Commission (ASIC). There is a similar requirement for large proprietary companies, which are required to lodge Form 388H to the ASIC containing their financial report. In the United States, private companies are held to different accounting auditing standards than public companies, overseen by

960-478: The Corporations Act 2001 limits a privately held company to 50 non-employee shareholders. A privately owned enterprise is a commercial enterprise owned by private investors, shareholders or owners (usually collectively , but they can be owned by a single individual ), and is in contrast to state institutions, such as publicly owned enterprises and government agencies . Private enterprises comprise

1020-661: The Enron scandal , although it did not engage with any new Arthur Andersen clients from the United Kingdom, China, or the Netherlands. Four years later, Ernst & Young became the only member of the Big Four to have two member firms in the United States, with the inclusion of Mitchell & Titus , LLP in 2006, the largest minority-owned accounting firm in the United States. Mitchell & Titus ended its membership in

1080-776: The Pope of the Roman Catholic Church hired EY to help review Vatican City State's finances and help "verify and consult" the institution's administration, including the museums, post office and tax-free department store. EY expanded further and acquired all of KPMG Denmark's operations including its 150 partners, 1,500 employees and 21 offices. In 2014, EY acquired global strategy consulting firm The Parthenon Group , gaining 350 consultants in its then-Transaction Advisory Services practice so that it could provide in-house strategy consulting services to its clients. The business unit has since been rebranded as EY-Parthenon and

1140-532: The Sydney -headquartered data and analytics specialists, Bridge Business Consulting. The Wall Street Journal reported in May 2022 that the firm might split its accounting and advisory divisions into two new, separate businesses. The plan, referred to internally as "Project Everest" would involve the consulting business completing an initial public offering , the proceeds of which would be used to compensate partners at

1200-599: The private company limited by shares in the United Kingdom (abbreviated Ltd ) or unlimited company and the proprietary limited company (abbreviated Pty Ltd ) or unlimited proprietary company (abbreviated Pty ) in South Africa and Australia . In India , private companies are registered by the Registrar of Companies , which is under the Ministry of Corporate Affairs . Indian private companies must contain

1260-408: The private sector of an economy. An economic system that 1) contains a large private sector where privately run businesses are the backbone of the economy, and 2) a business surplus is controlled by the owners, is referred to as capitalism . This contrasts with socialism , where the industry is owned by the state or by all of the community in common. The act of taking assets into the private sector

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1320-476: The "firm’s operations were deeply improper". ShinNihon, at the time, was Japan's biggest accounting firm, with about 3,500 certified accountants and more than 4,000 clients. Ernst & Young ShinNihon audited about 960 listed companies in Japan, the most among the Big Four , as reported in 2015. Ernst & Young ShinNihon had audited Toshiba for over 60 years and the firm had around 70 staff serving Toshiba before

1380-402: The 1980s and 1990s. During this time, the U.S. Securities and Exchange Commission , and various members of the investment community, began to raise concerns about a potential conflict of interests. This conflict would be brought about by firms offering both consulting and auditing services simultaneously to overlapping clients, a common practice among the "Big Five". In May 2000, Ernst & Young

1440-498: The EY network effective October 30, 2015. In April 2009, Reuters reported that Ernst & Young, spurred by the global economic downturn, had launched a cost-saving initiative encouraging its staff in China to take 40 days of low-pay leave between the summer of 2009 and the summer of 2010. Those who participated got a prorated salary equal to 20% of a regular salary, plus the benefits of

1500-764: The German Abschlussprüferaufsichtstelle (APAS) (the federal watchdog, responsible for the oversight on auditors) assessed, that EY has committed violations of duty on its Wirecard mandate and prohibited the company for two years to accept new audit mandates for companies at the German stock exchange. In June 2022, the SEC fined the firm US$ 100 million "for cheating by its audit professionals on exams required to obtain and maintain Certified Public Accountant (CPA) licenses, and for withholding evidence of this misconduct from

1560-513: The Moulin accounts as a "morass of dodginess ". The Valukas Report issued in 2010 charged that Lehman Brothers engaged in a practice known as repo 105 and that EY, Lehman's auditor, was aware of it. EY was accused of professional malpractice regarding the lack of disclosure of Lehman's repo 105 practice in Lehman's public filings. New York prosecutors announced in 2010 that they have sued

1620-686: The Private Company Counsel division of the Financial Accounting Standards Board . Researching private companies and private companies' financials in the United States can involve contacting the secretary of state for the U.S. state of incorporation (or for LLC or partnership, state of formation), or using specialized private company databases such as Dun & Bradstreet . Other companies, like Sageworks , provide aggregated data on privately held companies, segmented by industry code. By contrast, in

1680-574: The SEC's Enforcement Division during the Division's investigation of the matter". EY admitted "the facts underlying the SEC’s charges" and the penalty is a record imposed on a US audit firm. The Canadian Public Accountability Board has announced that it will investigate whether EY's Canadian arm was involved in similar practices. In 2009, in the Anglo Irish Bank hidden loans controversy , EY

1740-502: The United Kingdom, all incorporated companies are registered centrally with Companies House . Privately held companies also sometimes have restrictions on how many shareholders they may have. For example, the U.S. Securities Exchange Act of 1934 , section 12(g), limits a privately held company, generally, to fewer than 2000 shareholders, and the U.S. Investment Company Act of 1940 , requires registration of investment companies that have more than 100 holders. In Australia, section 113 of

1800-605: The United States but not generally in the United Kingdom , the term is also extended to partnerships , sole proprietorships or business trusts . Each of those categories may have additional requirements and restrictions that may impact reporting requirements, income tax liabilities, governmental obligations, employee relations, marketing opportunities, and other business obligations and decisions. In many countries, there are forms of organization that are restricted to and are commonly used by private companies, for example,

1860-730: The accounting scandal broke. Privately held company Private companies are often less well-known than their publicly traded counterparts but still have major importance in the world's economy . For example, in 2008, the 441 largest private companies in the United States accounted for $ 1.8 trillion in revenues and employed 6.2 million people, according to Forbes . Separately, all non-government-owned companies are considered private enterprises . That meaning includes both publicly traded and privately held companies since their investors are individuals. Private ownership of productive assets differs from state ownership or collective ownership (as in worker-owned companies). This usage

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1920-463: The affiliate in mainland China, which had received 99.98% of the fee. This was important because shareholders have less confidence in mainland auditors and because audit papers on the mainland are subject to state secrecy laws and can be withheld from outside regulators. EY's quality and risk management leader (Greater China) even testified in the Court of First Instance that he was not sure whether there

1980-413: The auditing engagement partner Mark Harvey was sanctioned and fined £100,000. EY's fine was subsequently cut to £2.2 million for admitting to the failings, with Harvey's fine reduced to £70,000 for the same reason. In December 2021, EY filed a criminal complaint against unknown persons with Munich prosecutors relating to the alleged leak of a classified German parliamentary report relating to its role in

2040-401: The case as "a scandalous waste of time, money and resources for all concerned." In 2009, EY, the former auditors of Sons of Gwalia , agreed to a $ 125m settlement over their role in the gold miner's collapse in 2004. Ferrier Hodgson , the company's administrator, had claimed EY was negligent over the accounting of gold and dollar hedging contracts. However, EY said that the proposed settlement

2100-538: The collapse of payments firm, Wirecard , to the German newspaper, Handelsblatt . In April 2022 the administrators of NMC Health filed a $ 2.5 billion lawsuit against EY, alleging negligence during its work on NMC's accounts spanning a seven-year period. In 2023, the Public Company Accounting Oversight Board reported on four EY Canada audits conducted in 2022 and found that half had "multiple deficiencies". In April 2023,

2160-634: The company opened a Digital Security Operations Center, located in Muscat, Oman, to cover the EMEIA region as part of a $ 10 million investment. In 2018, EY opened a $ 4.4 million professional services center in Louisville, Kentucky, US, creating 125 new jobs, and announced it would open an IT / tech hub in Nashville, TN , US, creating 600 regional jobs. In November 2022, it was announced EY had acquired

2220-528: The company underwent a transformation of some of its region borders, primarily the union of its CIS region (operating in the former Soviet Union) and the CEE region (Eastern Europe) to create the CESA block. Over the course of its operations, EY has transformed its business model and diversified its pool of offered services. Over the course of the last decade EY has substantially altered its business approach to offer

2280-483: The debt. On 5 September 2022, the firm announced that partners would vote on whether to split EY into two businesses. EY's member firms in China, Hong Kong, Macau, and Israel stated that they would not split. Rival firms such as KPMG and Deloitte have said they do not intend to imitate EY. In March 2023, Julie Boland, head of EY US, stated in a webcast that the split would be temporarily paused amid internal debate over

2340-415: The fifth largest firm globally at the time, Arthur Young & Co., to create Ernst & Young . In October 1997, Ernst & Young announced plans to merge its global practices with professional services network KPMG , to create the largest professional services organization in the world. The announcement came on the heels of an announced merger between Price Waterhouse and Coopers & Lybrand only

2400-683: The firm. David Goldfarb, a Lehman CFO who concocted the repo 105 balance sheet window dressing technique was a former senior partner of EY. EY said that its last audit of Lehman Brothers was for the fiscal year ending 30 November 2007 and that Lehman's financial statements were fairly presented in accordance with Generally Accepted Accounting Principles . In March 2015, EY settled Lehman-related lawsuits with municipalities in New Jersey and California. In 2014, tax arrangements negotiated by EY for The Walt Disney Company , Koch Industries , Skype , and other multinational corporations became public in

2460-528: The fraud was perpetrated. In October 2016, Mozilla stopped accepting WebTrust audits from Ernst & Young Hong Kong due to their failure "to detect multiple issues they should have detected" during their audits of WoSign . In February 2017, in response to questions regarding misissued certificates, Symantec stated they would no longer accept WebTrust audits from E&Y Korea and E&Y Brazil due to deficiencies in these audits. According to The Wall Street Journal , in 2019, EY had audited WeWork

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2520-558: The general public. In countries with public trading markets, a privately held business is generally taken to mean one whose ownership shares or interests are not publicly traded. Often, privately held companies are owned by the company founders or their families and heirs or by a small group of investors. Sometimes, employees also hold shares in private companies. Most small businesses are privately held. Subsidiaries and joint ventures of publicly traded companies (for example, General Motors ' Saturn Corporation ), unless shares in

2580-489: The immediate erosion of customer and stakeholder confidence in the event of financial duress. Further, with limited reporting requirements and shareholder expectations, private firms are afforded a greater operational flexibility by being able to focus on long-term growth rather than quarterly earnings. In addition, private company executives may steer their ships without shareholder approval, which allows them to take significant action without delays. In Australia, Part 2E of

2640-588: The last century and a half, the oldest of which was founded in 1849, in England, as Harding & Pullein. That same year, this firm was joined by an accountant named Frederick Whinney, who, a decade later, became a partner. After his son joined the firm, it was later renamed Whinney, Smith & Whinney, in 1894. In 1903, the firm Ernst & Ernst was founded in Cleveland, Ohio, by Alwin C. Ernst , and his brother, Theodore Ernst. In 1906, Arthur Young & Co.

2700-502: The new, separate auditing company. The firm's debt has proven to be an internal obstacle to the split. The debt is mostly owed to former partners of EY, taking the form of what the Wall Street Journal characterized as "effectively an unfunded pension plan". Would-be partners of the new accounting firm have expressed reservations as their descendant firm, the smaller of the new organizations, would presumably absorb most of

2760-511: The office-space company that "nearly collapsed after fumbling a planned initial public offering". In April 2020, a former partner and whistleblower was awarded $ 10.8 million for ethical misconduct by EY in a Dubai gold audit by the high court in London. EY appealed the decision, but then dropped the appeal in March 2021. In 2020, EY failed to uncover $ 2 billion that was missing at Wirecard AG,

2820-518: The proportioning of its tax service line among the proposed consulting and assurance spinoffs. 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 firm is organized geographically into three areas: Europe, Middle East, India and Africa; the Americas; and Asia-Pacific. In 2018,

2880-529: The so-called Luxembourg Leaks . The disclosure of these and other tax arrangements led to controversial discussions about tax avoidance . EY's member firm in Japan, Ernst & Young ShinNihon, was fined ¥2.1 billion ( US$ 17.4 million ) for failing to spot irregularities during audit of its client Toshiba , which was Japan's worst accounting scandal in years. The firm was also suspended from taking up new business for three months. An official from Japan's Financial Services Agency (FSA) described that "there

2940-637: The subsidiary itself are traded directly, have characteristics of both privately held companies and publicly traded companies. Such companies are usually subject to the same reporting requirements as privately held companies, but their assets, liabilities, and activities are also including the reports of their parent companies , as are required by the accountancy and securities industry rules relating to groups of companies. Private companies may be called corporations , limited companies , limited liability companies , unlimited companies , or other names, depending on where and how they are organized and structured. In

3000-547: The title EY . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=EY&oldid=1179802098 " Categories : Disambiguation pages Disambiguation pages with surname-holder lists Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Ernst %26 Young Ernst & Young Global Limited , trading as EY ,

3060-579: The word Private Limited at the end of their names. Privately held companies generally have fewer or less comprehensive reporting requirements and obligations for transparency , via annual reports, etc. than publicly traded companies do. For example, in the United States, privately held companies are not generally required to publish their financial statements . By not being required to disclose details about their operations and financial outlook, private companies are not forced to disclose information that may potentially be valuable to competitors and so can avoid

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3120-404: Was a formal agreement covering the relationship between the two EY entities. The court case in 2013 came as US regulators were taking an interest in similar cases of accounting fraud in mainland China. In September 2016, the US securities regulatory SEC fined EY US US$ 9.3 million for failures, including an auditor's romantic involvement with a client. Another partner on the team who was auditing

3180-457: Was a grave breach of duty". The firm's CEO and chairman, Koichi Hanabusa stepped down the following month to take responsibility and monthly salaries for 19 employees were cut from 20 per cent to 50 per cent. In an unusual move, the FSA publicly named seven accountants involved in the audit who were said of failing to exercise due caution and signing off on false financial documents. The FSA also said

3240-494: Was already used informally prior to its sanctioning adoption. In 2019, EY was the seventh-largest privately owned organization in the world. As of 2023, EY has continuously been ranked on Fortune magazine's list of the 100 Best Companies to Work For over 25 years, longer than any other accounting firm. The firm has, however, repeatedly come under scrutiny for systemic issues in their training, hiring, and work culture. EY resulted from several mergers of ancestor firms over

3300-468: Was criticised by politicians and the shareholders of Anglo Irish Bank for failing to detect large loans to Seán FitzPatrick , its chairman, during its audits. The Irish Government had to subsequently take full ownership of the Bank at a cost of €28 billion. The Irish Chartered Accountants Regulatory Board appointed John Purcell to investigate. EY said it "fundamentally disagrees with the decision to initiate

3360-505: Was not an admission of any liability. Following allegations by the Securities and Exchange Commission (SEC) that EY had committed accounting fraud in its work auditing the books of Bally Total Fitness , EY reached two settlements in 2008, including a fine of $ 8.5 million. EY Hong Kong resigned from the audit of Standard Water on when it emerged that although EY Hong Kong had signed off the audit, it had been effectively outsourced to

3420-473: Was punished for forming a lucrative business arrangement with one of its audit clients, PeopleSoft, thus creating a conflict of interest. As a result, the firm was barred by the SEC from accepting any new publicly traded companies as audit clients for six months. In April 2004, Equitable Life , a UK life assurance company, sued EY after nearly collapsing but abandoned the case in September 2005. EY described

3480-500: Was said to be the firm's largest client for most of the 1990s from Hong Kong. The EY partner for the Akai account between 1991 and 1999, David Sun Tak-kei , faced no charges and went on to become co-managing partner for EY China. A few months later EY settled a similar claim of up to HK$ 300m from the liquidators of Moulin Global Eyecare, an audit client of the Hong Kong affiliate between 2002 and 2004. The liquidators described

3540-520: Was set up by a Scottish accountant, Arthur Young , in Chicago. Starting in 1924, these two American firms became allied with prominent British firms; Young with Broads Paterson & Co.; and Ernst with the aforementioned Whinney Smith & Whinney. The latter of these two mergers spawned Anglo-American partnership Ernst & Whinney in 1979, then the fourth largest accountancy firm in the world. A decade later, in 1989, Ernst & Whinney merged with

3600-456: Was the first of those firms to fully separate its consulting practices via a sale to the French IT services company Capgemini for $ 11 billion, creating the new company Capgemini Ernst & Young, which was later renamed back to Capgemini . In 2002, Ernst & Young serviced a large chunk of the clients previously working with Arthur Andersen after their downfall in connection with

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