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The EY Europe transition has its partners concerned with Wirecard damage

The EY accounting team needs to establish strengths in the new European team, incorporating resources across the region but worrying that any money could fall from Wirecard Deception can be redistributed.

The restructuring comes as a result of the Big Four corporate business’s attempt to reduce operating costs by half and empowering the middle class to make a choice on the pay of their partners, according to the people described in the policy.

Some observers fear that the new format could impose Wirecard fines by sharing it with the German team that oversaw the operation. EY visited the pay group for ten years until it fell into false fraud last year.

“My French friends are doing this because they say ‘why should we pay for Wirecard?’,” Said a person close to the company.

Someone close to the matter said there is no “public disclosure” as to whether any money that could be made in Wirecard-related cases or remedial measures could be shared with counterparts in other countries.

However, a person at EY who participated in the new phase said such concerns were “unfounded”, adding that accreditation agencies should be maintained in each country. The Big Four has traditionally protected themselves from the dangers that can spread in their global businesses through special relationships in each country in which they operate.

EY in February announced it was developing a new region of Western Europe, without elaborating on what could happen. The regional group, which includes 27,000 people and $ 4.7bn in annual salaries, includes Germany, France, the Netherlands, Italy, Spain and 20 other countries in western Europe and North Africa and is expected to be launched on July 1. UK, Ireland or Scandinavia.

EY and its three main competitors – Deloitte, KPMG and PwC – have been disrupted by their type of business in which profits and profits are concentrated in local or sub-corporations, companies said.

Under the EY plan, business processes such as consulting and M&A advice should be managed by a single financial report. How tax and tax exchanges are regulated by law.

The merger will extend beyond existing funds between the two regions, reflecting the remittances sent by stakeholders in one country. In the meantime, partners in each country also contribute a small portion of the costs to the businesses they have shared as expertise and remuneration of foreign directors.

European officials will decide to pay each other in each country, although there will be talks with local authorities, say people who are familiar with the plans. Partners in high-income countries may continue to reap greater benefits.

One person close to the warned group said it was a “strange time” to link German events with those in other countries.

The Big Four Company is facing a number of lawsuits in Germany and has lost several notables customer research the largest economy in Europe, including Deutsche Telekom and Commerzbank.

The EY reform, which is part of the “NextWave” strategy that began before the Wirecard collapsed, aims to reduce costs and improve customer service by reducing “silo systems” and allowing teams in different countries to work seamlessly, experts say.

International co-operation and staff sharing are essential for consultation.

“It’s something that both companies have been trying to tackle,” said a former global executive at Big Four Firm. “It’s a sacred grail in a way. . . If they can afford it then it is good for the customers and it is an opportunity to compete with them. ”

The new Western European region will change three sub-regions, with the goal of reducing operating costs by half, says a planner.

EY declined to comment.

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