EY Cancels Split of Audit, Consulting Units After Talks Fail (3)

Ernst & Young’s top leaders called off a planned breakup of the firm’s consulting and audit practices after the US affiliate decided not to take part, disrupting a nearly yearlong struggle to build consensus for the historic shakeup of the Big Four accounting firm.

Leaders told partners Tuesday that they planned to continue laying the groundwork for a possible split, but that more time and investments were needed to make that a reality.

The firm intended to spin off its consulting business and much of its tax practice into a stand-alone public company. But the plan, known as Project Everest, ...