Ernst & Young, Oil Company Enter Venture --- Accounting-Services Firm To Be Created With Unit Of Royal Dutch/Shell

The new unit, Tasco Europe LLP, is a bold twist on the idea of outsourcing. Every large company relies on outside auditors from accounting firms to check whether its internal auditors are working effectively to deter fraud and waste. But a growing number of companies are cutting costs by outsourcing...

Full description

Saved in:
Bibliographic Details
Published inThe Wall Street journal. Eastern edition
Main Author By A. Craig Copetas and Elizabeth MacDonald
Format Newspaper Article
LanguageEnglish
Published New York, N.Y Dow Jones & Company Inc 31.10.1997
EditionEastern edition
Subjects
Accounting firms
Audit departments
Auditing standards
Internal auditors
Joint ventures
Outsourcing
United States > US
Online AccessGet full text

Cover

More Information
Summary:The new unit, Tasco Europe LLP, is a bold twist on the idea of outsourcing. Every large company relies on outside auditors from accounting firms to check whether its internal auditors are working effectively to deter fraud and waste. But a growing number of companies are cutting costs by outsourcing their accounting and internal-audit departments to accounting firms. The total global accounting-outsourcing market will top $280 billion by 2000, with annual growth rates of 20% thereafter, according to G2 Research, a market-research firm in Mountain View, Calif. "Tasco will initially do all of the accounting for affiliated Shell companies within the oil-products division of Shell International," said Jacky Ross, a partner in the Pan European shared service practice for Ernst & Young in London. "We're going to target other multinational companies around Europe who feel they can't handle this work on their own." Worried about slumping audit revenues, the Big Six accounting firms say they have tripled in the past five years the amount of outsourcing work they perform. (If partners and regulators approve two large pending accounting-industry mergers, there will be just four main accounting firms. Ernst & Young, based in New York, currently plans to merge with KPMG Peat Marwick LLP.)
ISSN:0099-9660