Ernst & Young faces numerous challenges as it tries to gain ground in the competitive advisory market while maintaining its place in the audit industry as its leaders push ahead with a planned breakup of the $40 billion revenue firm.

The consequential deal could hinder EY's ability to retain and hire the skilled professionals it needs to deliver in-demand audit and reporting services as a stand-alone audit firm, said Jim Peterson, former in-house attorney for Arthur Andersen, the former top audit firm which collapsed in 2002.

On this episode of Talking Tax, Peterson discusses with Bloomberg Tax's Amanda Iacone about what EY’s breakup means to the accounting industry and the risks that firm leaders face as they try to decouple the global business.

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