Ernst & Young Sees Strong Revenue Growth Ahead

Ernst & Young reported worldwide revenues of $10.1 billion for the fiscal year ending June 30, 2002, representing growth of 2.7%. Chairman James Turley said he expects a return to double-digit revenue growth in the current fiscal year.

A breakdown by line of service shows revenues increased 2.9% to $5.8 billion for assurance & advisory business services, 1.5% to $3.4 billion for tax and law, and 9.0% to $0.7 billion for corporate finance.

"It has been a difficult year for our profession," explained Chairman Turley. "A tough economy has meant we've grown less than we would have liked to, but in our view 2.7% growth is significant given the challenging environment in which we were operating. This past year, however, will really be remembered for how we strengthened our firm on a global basis through being engaged by more former Andersen clients and executing more combinations with former Andersen practices than any other firm."

Altogether, Ernst & Young added 25,000 Andersen partners and staff during the past year. If fiscal 2002 results were restated to include revenues from the acquired Andersen practices, EY estimates its revenues would have amounted to between $12 billion and $12.5 billion.

Other factors positioning the firm for future growth include higher audit fees and a recovering economy. "We are seeing a firming up, a strengthening of audit pricing," explained Chairman Turley. "There's more work today. There's more time being spent with . . . audit committees in companies." As a result, Chairman Turley said audit and audit-related services are likely to grow the fastest during the current year, outpacing the firm's traditionally strong tax practice, at least temporarily.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.