Headquartered in London, United Kingdom, Ernst and Young is the third largest audit firm in the world in terms of aggregated revenues in 2014.
The services provided by this company include Tax advisory, Assurance (including financial audit), Financial Advisory and Consulting which it provides to companies worldwide. Ernst & Young Global Limited is basically a network of a number of member firms in different countries each having a separate legal structure. It has about 700 offices in 150 different countries across the globe with employee strength of about 190,000.
The history of this company is as old as 166 years. Ernst & Young as it is today is a result of a number of mergers of old organizations. One of its oldest partnership, Hardin & Pullien dates back to 1849. It was joined by Frederick Whinney & the firm was renamed as Whinney Smith & Whinney in 1894. In 1924 this firm merged with Ernst& Ernst and Ernst & Whinney came into existence. In 1989 Ernst & Whinney merged with Arthur Young to form the Ernst & Young. Arthur Young & Co. which was founded in 1906 was at the time of the merger the Fifth largest accountancy firm in the world with Ernst and Whinney being the number four. The firm was popularly known as Ernst & Young until it underwent a rebranding in 2013. It was then that the acronym ‘EY’ was officially adopted.
Out of its four major service lines Assurance accounts for 41% of total revenues in 2014. The second largest share of revenues is held by tax with about 26%. This is followed Advisory accounting for 24% of the total revenues. With 9%, Transaction Advisory Services (TAS) has the minimum share of the total revenues of Ernst & Young in 2014. EY operates globally with four major area of operation namely EMEIA (Europe, Middle East, India and Africa), Asia- pacific, Americas and Japan. Out of the ‘Big Four’ audit firms EY happens to be the most globally managed.