City Of London
China’s Shift Away From Big Four Auditors Has EY Most Exposed
- Beijing recently urged state firms to drop global accountants
- Central SOEs contributed to 12% of EY’s China revenue in 2021
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Among the four biggest global accounting firms, Ernst & Young is likely to be the most exposed to Beijing’s crackdown on US-linked auditors, as it stands to lose about a 10th of its China revenue.
The Asian country recently urged state-owned enterprises to phase out Big Four contracts and hire locally instead in a bid to rein in foreign accountants amid what it called data security concerns. For now, the guidance applies to only central SOEs, and it’s unclear whether province-level SOEs and private companies will be included later.