GLOBAL - Deloitte & Touche, the professional services firm, has announced that it intends to separate Deloitte Consulting to enable audit clients to continue to use Deloitte Consulting without raising public concern about auditor independence.
John Connolly, senior partner and chief executive, said: As a consequence of market perception we have concluded that the interests of clients and staff are best served through this separation.
“We strongly believe that the concerns about auditor independence arise more from perception than the evidence of business reality. However, we have taken the decision because we, in the current environment, cannot allow our clients to be criticised because of the perception problem surrounding the scope of services audit firms may provide to clients.
In a further effort to address perceived concerns about auditor independence, Deloitte also announced it would no longer perform internal audit outsourcing for audit clients.
Connolly added, Despite our decision to separate Deloitte Consulting, we continue to believe that effective auditing of complex organisations requires a team of professionals with skills in a wide variety of disciplines. We will do everything necessary to ensure that our audit clients continue to be served by teams that have all the skills and experience necessary to provide them with the high quality audits we have provided in the past.
The news follows last week’s announcement by rival PricewaterhouseCoopers that it to was to hive off its management consulting business, PwC Consulting through an initial public offering
PwC is to file a registration statement for the IPO in Q2.
The firm declared its initial intentions to separate various parts of its organisation two years ago. Last year it sold its US corporate value consulting business to Standard & Poor’s, followed by the acquisition of its former human resource outsourcing unit, Unifi Network, by the Mellon Financial Corporation.
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