Historical evolution of Ernst & Young accounting firm

1989 may19, Ernst Whitney (EW, Ernst &; Whinney) merged with arthur young (AY, ranked sixth) to form Ernst & Young (Ernst &; Young) became the largest accounting firm in the world at that time. In the wave of globalization, the emergence of new business types and the change of business model, Ernst & Young seized the opportunity of development. Interestingly, in 1948 before the merger, Ernst and arthur young, two people who had never met in their lives, died within a few days. They left Ernst & Young a cultural heritage, that is, innovation, endeavor, professional sensitivity and professional care. The history of Ernst Whitney

Ernst Whitney (Ernst &; Whinney) accounting firm, formerly Ernst & Young (Ernst &; Ernst), because its founder is a pair of brothers named Ernst, the elder brother named Theodore Ernst and the younger brother named Alwin Ernst. Both brothers have long-term accounting experience, rich experience and skilled business. Teodor works as an accountant in a railway company, while Alvin works in an accounting firm. 1903, Ernst brothers jointly raised 500 dollars to set up their own accounting firm, named Ernst & Young. It was not until 1979 that Ernst was renamed Ernst & Young Whitney, or E &；; W, universal in all countries of the world.

On September 30th, 1979,/kloc-0 officially accepted the Chrysler bankruptcy evaluation case which attracted much public attention. The US Treasury Department approved its evaluation report, and the US Congress also passed the financial assistance plan of $65,438.05 billion for Chrysler in February of 19. Chrysler finally avoided bankruptcy. From 65438 to 0984, the 23rd World Summer Olympic Games was held in Los Angeles, USA. Ernst Whitney was in charge of grading, ranking first in the industry and first in the Olympic Games. 1979，E &； W under the planning of groves, Ernst & Young Whitney International was established. Winnie the Pooh International is an international organization, and groves himself is the chairman of the board of directors.

American e&; The current representative of W firm is Ray J Groves. 1935 was born in Ohio and graduated from Ohio State University with honors. 1957 joined Ernst & Young. Nine years later, he was promoted to partner because of his excellent work. 1977, at the age of 42, he was elected as the national E &；; To replace his predecessor, Richard T. Baker. Under the leadership of groves, E&; W's strength has grown rapidly, its business has advanced by leaps and bounds, and its ranking among the eight universities has steadily improved. According to the statistical data of 1984, e &；; W The total revenue of global public fees is about US$ 65,438+0,654,380 billion, of which US firms earn about US$ 700 million. From this period to 1987, E &；; W's public income has been ranked fifth and third among the eight universities in the world and the United States. 1988, its total income was $21900,000, and its public income in the United States was11800,000.

Groves has made great achievements in the field of non-governmental auditing, and enjoys a high reputation in the American auditing field. Therefore, he holds leading positions in many accounting organizations. From 1980 to 1983, he served as the director of the board of directors of American Institute of Certified Public Accountants (AICPA), and was elected as the chairman of AICPA in June of 1984, becoming the first person in E&: W's history to hold the highest position in AICPA. In addition, he has served as the chairman of various committees, such as the chairman of the accounting firm division of the US Securities and Exchange Commission, the chairman of the US Securities and Exchange Commission and the chairman of the US Securities and Exchange Commission. On the Historical Evolution of arthur young

Arthur young (AY for short) was founded in 1894, which is an earlier accounting firm in the United States. When it first opened, its capitals were E& and E & ampw, which cost only 500 dollars. But after decades of efforts, it has finally developed into a large international accounting firm. In the early 1980s, it set up more than 300 firms in 75 countries around the world, with more than 20,000 partners and staff, and its annual total income exceeded 10 billion US dollars (1985), ranking sixth among the eight largest companies in the world. It has more than 8,000 visa customers, such as Mobil Oil Company, Lockheed Aircraft Company, American Express Company, Pepsi Company and Texas Instruments Company. Big companies like AY are regular customers. Arthur young 1863 was born in Glasgow, England, ranking third among the seven brothers. My father was a shareholder and broker of the shipping company, and also served as the chairman of Glasgow Trams Company, which is quite famous in Glasgow business circles. 188 1 year, Arthur young entered the university of Glasgow, studied literature first and obtained a master's degree in literature; Later, he switched to law and obtained a bachelor's degree in law. Arthur Jane got good grades in all subjects and studied economics, but she was not familiar with accounting. Therefore, 1888 entered a local bank to engage in audit work after graduating from university, with mediocre results. 1890 arthur young immigrated to the United States with his family and was employed by a company named J Kennedy tod&; The bank moved from Scotland, raised funds from Britain and invested in many American enterprises. At that time, the bank was investing in building a large railway in the northern part of the mainland. Four years later, the bank was declared closed by its partners. At this time, arthur jan came into contact with the accounting business, deepened his understanding and began to form the idea of establishing an accounting firm. Soon, he met Charles Stuart. Statter has been the chief controller of a copper mine company for many years. He wants to do things by himself. After a year of communication and preparation, they founded Stuart Young (Stuart &; Young) accounting firm. Besides them, there was only a stenographer and an office.

Later, due to the smooth business development and prosperous business, the firm took the opportunity to set up branches abroad. 1895, Stat-Young's first branch was located in Kansas City, which was originally presided over by arthur jan himself; A year later, Arthur Jane's younger brother joined S&; Y, helping his brother in the Kansas branch. Later, the branch was presided over by him. 1906, due to disagreement between two partners at work, Statter withdrew from the firm and was continued by Arthur Jane and his brother. The company changed its name to arthur young &; Company.). After the name change, arthur young Certified Public Accountants Co., Ltd., under the joint operation of Arthur Brothers, developed its business steadily and set up branches one after another.

New york branch was established in 1907, Wisconsin branch in 1908, LA branch in 1920 and Pittsburgh branch in 192 1. 192 1 years ago, the partnership contracts of all branches were independent. In order to strengthen internal unity and expand overseas with the help of the "group army", the partnership organization was changed from 192 1 to a national single contract. At that time, eight partners of AY signed a contract together. Two years later, arthur young set up its first overseas office in Paris. In the same year, in order to provide more satisfactory services to multinational companies such as American Standard Oil Company, ESSO Oil Company and RCA, AY cooperated with broadus, Patterson &; The company and accounting firm cooperated to set up a branch in London, named arthur young Broad Patterson &; Company.

From 65438 to 0944, with the increase of American investment in Canada, AY cooperated with Canadian accounting firms Clarkson, Gordon &; Company. Cooperate to establish a Canadian branch named arthur young Clarkson Gordon &; Its main business offices are located in Toronto and Montreal. Since 1950s 19, AY has devoted itself to the development of overseas companies and strived to realize international operation. Before the merger, AY had established more than 200 companies in more than 70 countries and regions. AY has its own unique strategy in setting up overseas offices. Generally, formal cooperation is adopted, that is, an accounting firm with appropriate scale and good reputation becomes an ally and operates together, but actually becomes its own branch. Only when we have to, for example, we can't find a suitable partner in the local area, or customers can't wait to ask AY to provide local services immediately, then AY will open a branch directly. AY has set up its own offices in Italy, Belgium, Brazil, Venezuela, Japan, South Korea, Hong Kong, Indonesia and other countries and regions.

Among the eight universities, AY is in the middle and lower position (combined with the sixth in the front row, but very close to the seventh and eighth); However, in Canada and continental Europe, AY is more than the top five.