EY has abandoned Project Everest, its highly anticipated plan to split the firm's audit and consulting divisions, following internal disagreements and resistance from US executives.
The move was aimed at eliminating conflict-of-interest regulations hindering consultants from offering services to audit clients and would have been the largest shake-up in the accounting industry in over 20 years.
However, the US executive committee's decision to halt the project has led EY's global leadership team to cease work on it.
The group operates as a network of member firms, requiring approval for any split on a country-by-country basis.
Reports suggest the project's collapse raises questions about the future of EY's global chief executive, Carmine Di Sibio, and the overall strategy of the firm, as the global executive committee continues to pursue a future transaction.