Ernst & Young

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Ernst & Young Global Limited (EYG)

logo
legal form Ltd.
founding 1989 (individual companies since 1849)
Seat London , UKUnited KingdomUnited Kingdom 
management Carmine Di Sibio
( Chairman & CEO )
Number of employees 261,559 (June 30, 2018)
sales 34.8 billion US dollars (2017/2018)
Branch Auditing , tax advice , transaction advice , management advice
Website www.ey.com

Ernst & Young is a globally operating network of legally autonomous and independent companies under the acronym EY in the areas of auditing , tax advice , transaction advice , risk advisory, financial advisory, as well as corporate and management advice and classic legal advice.

The international EY organization under the umbrella of Ernst & Young Global Limited (EY Global) employed over 284,018 people at 700 locations in 150 countries in 2018/2019. The total revenue of the worldwide network in the fiscal year 2018/2019 was 36.4 billion US dollars.

EY (Ernst & Young) is one of the four accounting firms with the highest turnover in the world and is one of the so-called Big Four .

history

Today's company EY (Ernst & Young) is the result of a series of mergers between predecessor organizations. The oldest original company was founded in England in 1849 as Harding & Pullein. In the same year, the American Frederick Whinney joined the company. He became a partner in 1859 and, with his sons as additional partners, the company was renamed Whinney, Smith & Whinney in 1894.

Alwin and Theodore Ernst founded the Ernst & Ernst company in Cleveland in 1903. In 1906 Arthur Young & Company was founded in Chicago. A prominent client of Ernst & Ernst in the 1920s was the dazzling speculator and “match king” Ivar Kreuger .

In 1965, Whinney, Smith & Whinney merged with Brown, Fleming & Murray to form the accounting and consulting firm Whinney Murray. Whinney, Smith & Whinney had been closely associated with Ernst & Ernst since the 1940s, and in 1979 Whinney Murray, Ernst & Ernst and Turquands Barton Mayhew merged to form Ernst & Whinney, then the fourth largest accounting company in the world. In 1989 this number four merged with the then number five, Arthur Young, from which Ernst & Young emerged. The company greatly expanded its consulting activities in the 1980s and 1990s. The US Securities and Exchange Commission and institutional investors expressed increasing concerns about possible conflicts between advisory and auditing activities. Ernst & Young was the first of the five largest US auditing firms to formally and in fact completely separate its activities in the field of systems integration and auditing.

In May 2000, the consulting division was sold to the French consulting and IT service company Cap Gemini for 11 billion US dollars, resulting in the consulting company Cap Gemini Ernst & Young, which was later renamed Capgemini .

In December 2010, New York Attorney General Andrew Cuomo brought charges against Ernst & Young. The company was accused of helping the investment bank Lehman Brothers with balance sheet tricks and repo 105 deals to conceal the extent of the real debt. Cuomo not only reclaimed the more than $ 150 million in fees that Ernst & Young had collected between 2001 and 2008 for examining the Lehman books, but also wanted to recover the damage that investors had suffered when the bank went bankrupt in September 2008. In mid-April 2015, EY paid $ 10 million in a settlement with Cuomo's successor, Eric Schneiderman .

On July 1, 2013, Mark Weinberger took over the position of Global Chairman and CEO of the global EY organization and realigned the company. Under his leadership, the brand name was changed from Ernst & Young to "EY".

EY's customers include a. Amazon , Amgen , Beiersdorf AG , BP , Coca-Cola , Google , HeidelbergCement , Intel , Oracle and Siemens , as well as Disney , Koch Industries VW AG , Lufthansa Group and Deutsche Bank .

As part of the accounting scandal of the former customer Wirecard , criminal charges were filed against some of EY's auditors in June 2020.

EY Germany

The German EY Group has its headquarters in Stuttgart (Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft). At the end of June 2019, it had 11,124 employees. In the 2018/2019 financial year, the company achieved sales of EUR 2.1 billion, making it second among the four largest German auditing and consulting firms (“Big Four”). In the area of ​​tax consulting, EY was the largest tax consulting company on the market in Germany with a turnover of 707 million euros; In second place was PwC with a turnover of 565.5 million euros.

EY has 21 branches in Germany: Berlin, Bremen, Dortmund, Dresden, Düsseldorf, Essen, Eschborn / Frankfurt am Main, Freiburg, Hamburg, Hanover, Heilbronn, Cologne, Leipzig, Mannheim, Munich, Nuremberg, Ravensburg, Saarbrücken, Singen , Stuttgart and Villingen-Schwenningen.

In December 2008, EY submitted its first sustainability report . According to its own statements, the report provides information on the ethically, socially and ecologically relevant activities and projects in all areas of the company.

On April 13, 2016, in connection with the indictment of deliberate bankruptcy in 36 cases against the Schlecker drugstore chain, the Stuttgart public prosecutor also initiated criminal proceedings against two Ernst & Young employees, who were discontinued at the end of May 2017 against payment of a monetary condition.

EY branch in Eschborn / Frankfurt

Range of services

The range of services offered by EY Germany includes auditing and audit-related advice (Assurance), national and international tax advice (Tax), transaction advice (Transaction Advisory Services) in the fields of financial, tax and legal and strategy and management advice (Advisory). In addition, the EY Law Rechtsanwaltsgesellschaft advises in all fields of national and international commercial law. The services are aimed at both corporations and medium-sized companies.

history

Ernst & Young Germany goes back to Schitag (Schwäbische Treuhand-AG), founded in 1919, and Datag (Deutsche Allgemeine Treuhand AG), founded in the same year, which joined the international associations of Arthur Young and Ernst & Whinney in the 1980s. In 1994 the two companies merged to form Schitag Ernst & Young, and from 1999 the two German member companies also operate under the common name Ernst & Young.

Arthur Andersen was founded in the United States in 1913 as Andersen, Delaney & Co. In the 1960s and 1970s Arthur Andersen became one of the largest auditing and consulting firms in the world. The company opened its first office in Germany in 1960. In 2002 Arthur Andersen Germany had 3800 employees at ten locations. Due to his involvement in the Enron scandal, Arthur Andersen stopped working in 2002. Arthur Andersen's independent national companies joined forces with various competitors.

Arthur Andersen's German subsidiary merged with Ernst & Young in September 2002. After the merger with Arthur Andersen, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft became the third major force among German auditing and consulting firms.

With the global name change from Ernst & Young to EY, the German Ernst & Young Group also changed its branding from Ernst & Young Germany to EY Germany in 2013.

The company celebrated its 100th birthday in 2019.

EY Switzerland

EY's Swiss subsidiary, headquartered in Basel, achieved net sales of CHF 667.7 million in the 2018/2019 financial year. Ernst & Young has 11 branches in Switzerland and Liechtenstein: Aarau, Basel, Bern, Geneva, Lausanne, Lugano, Lucerne, St. Gallen, Vaduz, Zug and Zurich. At the end of June 2019, 2538 people were working at EY Switzerland.

Range of services

EY's range of services includes auditing, tax advice, transaction advice and corporate and management advice. In addition, EY Germany has concentrated on nine industries for which the company has set up its own industry teams. These include Automotive & Transportation; Consumer, Products & Retail; Energy, Mining & Metals; Government & Public Sector; Industrial products; Life Sciences, Health, Chemicals; Private equity; Real Estate, Hospitality & Construction; Technology, Media & Entertainment, Telecommunication. EY's range of services is aimed at start-up, medium-sized and large companies.

history

The foundation of Verwaltungs-, Revisions- und Treuhand AG, Basel, which was renamed Allgemeine Treuhand AG in 1919 (hereinafter the abbreviation ATAG is used), took place on March 6, 1917 by the Basler Handelsbank. On November 21, 1945, ATAG's chairman at the time, Manfred Hoessly, managed to conclude a purchase agreement with the Swiss Bank Corporation for the majority stake in the shares, the majority of which were then transferred to the Manfred Hoessly Foundation in 1958. At that time, this independence was a specialty among auditing firms.

In 1989 Arthur Young International and Ernst & Whinney International merged to form Ernst & Young. In order to document the integration into the new company externally, ATAG has called itself ATAG Ernst & Young AG since May 1991 . In 2000, when the company was renamed Ernst & Young AG, the final step in this naming process was completed. The EMEIA organization, founded in 2008, is the last act in international integration for the time being.

Ernst & Young took over the employees of the Arthur Andersen subsidiary in 2002.

On July 1, 2016, Marcel Stalder took over the function of CEO, the former CEO Bruno Ciomento acts as Chairman of the Board of Directors.

In October 2018, Lukas Hässig on InsideParadeplatz and on December 12, 2018, the Tages-Anzeiger reported allegations of sexual harassment against a member of the management team and Chief Talent of Ernst & Young. On December 14, 2018, this resulted in the exemption of the executive board member.

Move to Zurich

Ernst & Young Switzerland's new corporate headquarters platform in Zurich

On June 23, 2011, Ernst & Young AG officially moved into the new company headquarters in Zurich. The building called Platform is an annex to the Prime Tower . The seven-storey commercial building has a triangular floor plan on an area of ​​6600 m² and offers capacity for a total of over 1000 employees. With the new building, Ernst & Young's previously three locations in Zurich have been combined in a central location. Construction work began in early 2009 and was completed in spring 2011.

EY Austria

EY is one of the leading auditing and consulting organizations in Austria. With around 1000 employees at four locations (Vienna, Linz, Salzburg and Klagenfurt), the company achieved sales of 160.1 million euros in the 2018/2019 financial year. Together with the total of 284,018 employees of the international EY organization, EY Austria looks after customers all over the world.

Emerging from four law firms in January 1990, EY Austria offers both large and medium-sized companies a portfolio of services: auditing, tax advice, transaction advice and management advice.

EY Austria presents its own sustainability report every year. According to its own statements, the report provides information on the ethically, socially and ecologically relevant activities and projects in all areas of the company.

EY Austria has been honoring Austria's top entrepreneurs with the Entrepreneur Of The Year Award every year since 2006 .

globalization

The 87 EY national companies in Europe, Africa, India and the Middle East merged in July 2008 to form an operational unit (EMEIA = "Europe, Middle East, India & Africa"). The result was an organization that today has 124,296 employees and a turnover of 12.18 billion US dollars (fiscal year 2016/2017). EY in Germany, Switzerland and Austria form the organizational unit GSA (Germany, Switzerland, Austria) within EMEIA.

In order to be able to support German companies internationally, there is a global network of German employees within the EY companies, the so-called German Business Network (GBN). The GBN is represented worldwide in more than 30 countries with more than 100 contacts.

Prizes and awards

In 2017, EY Global was ranked fourth in Universum's “The World's Most Attractive Employers” ranking, ahead of the Big 4 competition for the first time .

Web links

Commons : Ernst & Young  - collection of pictures, videos and audio files

Individual evidence

  1. ↑ http://www.ey.com/Newsroom/Facts-and-figures
  2. ↑ a b ey.com/en_gl/global-review/2018/facts-and-figures , accessed on September 17, 2018.
  3. ↑ EY: Global Review 2019. Retrieved on February 28, 2020 (English).
  4. ↑ PWC, EY, KPMG, Deloitte: The "Big Four" continue to grow rapidly in: Handelsblatt . 15th January 2018
  5. ^ Frank Portnoy: The Match King. Ivar Kreuger, the Financial Genius behind a Century of Wall Street Scandals. Public Affairs Books, New York 2009 ISBN 978-1-58648-812-3 pp. 57ff.
  6. ↑ sda / dpa, 2010: The Lehman bankruptcy catches up with Ernst & Young. New York Public Prosecutor's Office files indictments , published in Neue Zürcher Zeitung on December 21, 2010, accessed on February 4, 2018
  7. ↑ Cover for accounting tricks Auditors accused of Lehman bankruptcy tagesschau.de, December 21, 2010, accessed on February 4, 2018
  8. ^ Ernst & Young in Settlement Over Lehman Brothers nytimes.com, on April 15, 2015
  9. ↑ a b EY Chance Client Letter 2013
  10. ↑ Stern , No. 12/2013, p. 86
  11. ^ Reuters: Disney and Koch Industries Had Luxembourg Tax Deals, Journalists' Group Says . In: The New York Times . December 10, 2014, ISSN  0362-4331 ( nytimes.com [accessed September 17, 2017]).
  12. ↑ PwC gives up Lufthansa mandate after 65 years. Accessed January 21, 2020 .
  13. ↑ SdK files criminal charges against auditors of Wirecard AG. Retrieved July 2, 2020 .
  14. ↑ Bert Fröndhoff: EY breaks sales mark of two billion euros. Handelsblatt, January 15, 2018, accessed on February 28, 2020 .
  15. ↑ Julia Schmitt: PwC is no longer the market leader in the consulting business. Finance Magazine, accessed February 28, 2020 .
  16. ↑ Ernst & Young Sustainability Report 2010 .
  17. ↑ After bankruptcy: Schlecker accused of willful bankruptcy . In: Frankfurter Allgemeine Zeitung . April 13, 2016, ISSN  0174-4909 ( faz.net [accessed March 6, 2017]).
  18. ↑ Everything about Anton Schlecker, his family and his bankruptcy . ( manager-magazin.de [accessed on March 6, 2017]).
  19. ^ Proceedings against auditors E&Y discontinued manager-magazin.de, on May 23, 2017
  20. ↑ EY: 100 Years of EY - An Interim Review. Retrieved February 28, 2020 .
  21. ↑ Numbers, data, facts. EY, accessed February 28, 2020 .
  22. ↑ Numbers, data, facts. EY, accessed February 28, 2020 .
  23. ↑ uhg: Andersen Switzerland teamed up with Ernst & Young | NZZ . In: Neue Zürcher Zeitung . April 17, 2002, ISSN  0376-6829 ( nzz.ch [accessed December 16, 2018]).
  24. ↑ Press release EY. Retrieved December 16, 2018 .
  25. ↑ Sexual Harassment: EY dismisses talent officer. In: Inside Paradeplatz. December 14, 2018, accessed on December 16, 2018 (German).
  26. ↑ Michèle Binswanger: Ernst & Young releases employees . In: Tages-Anzeiger . December 14, 2018, ISSN  1422-9994 ( tagesanzeiger.ch [accessed December 16, 2018]).
  27. ↑ Ernst & Young Switzerland - media release: Concentration of forces at a central location ( memento from July 31, 2012 in the web archive archive.today ) on June 23, 2011, archived from the original
  28. ↑ https://ey-gsa.instantmagazine.com/publication/jahresbericht-2019-oesterreich/ey-jahresbericht-at-2019/
  29. ↑ http://www.ey.com/AT/DE/Home
  30. ↑ https://www.ey.com/de_at/climate-change-sustainability-services/wie-wir-unsere-gesellschaftliche-verendung-mit-leben-fuellen
  31. ↑ https://www.ey.com/de_at/entrepreneur-of-the-year-oesterreich
  32. ↑ What is EMEIA? ( Memento of May 14, 2011 in the Internet Archive ) Retrieved January 11, 2011.
  33. ↑ Yvonne Diaz: EY reports strong global revenue growth in 2017. September 5, 2017, accessed on April 25, 2018 (English).
  34. ^ Ernst & Young Annual Report 2009/2010 - Ernst & Young in Switzerland ( Memento of September 21, 2011 in the Internet Archive ), accessed on January 11, 2011.
  35. ^ German Business Network. Retrieved April 25, 2018 .
  36. ↑ The World's Most Attractive Employers 2017. Retrieved January 11, 2018 .