Accounting firm Ernst & Young (EY) has called off its plan to break up its auditing and consulting divisions and said it was "stopping work on the project" because its US arm decided not to move forward, Monica Miller reported for BBC News.
Photo Insert: EY's announcement ends a year-long battle to build internal support to split the units.
Financial supervisory bodies in the US, UK, and Europe have raised concerns about large accounting firms, claiming they cannot fairly serve as an auditor of clients who also use their consultancy services.
The Big Four - Deloitte, EY, KPMG and PwC - dominate the global accounting market share.
The plan came as regulators called for major industry reforms over conflicts of interest and poor working practices. Had the deal - called "Project Everest" internally - gone through, it would have been the biggest shake-up in the accountancy industry for more than two decades.
EY's announcement ends a year-long battle to build internal support to split the units.
"We acknowledge the challenges with separating some of our businesses that have the deepest technical expertise in a way that gives both organizations the capabilities they need to compete in the market effectively," said an internal note seen by the BBC.
The project will cost the firm more than $100 million (£80.3 million), according to the Wall Street Journal.