Big Four Accounting Firms – Overview Of The Big Four Accounting Firms
I believe you must have come across the Big Four Accounting Firms on the internet before, but why are they called the big four. The Big Four Accounting Firms are simply the largest accounting in the whole world. And of course, they did not become the Big Four with a history. That’s why in this article today, I will be telling you about the Big Four Accounting Firms according to some top sites. These firms offer individuals, governments, and organizations with auditing and an extensive range of account services. Find out more about the big four by reading on.
Big Four Accounting Firms
The Big Four Accounting Firms is an actual nickname used to refer to collectively the biggest and largest professional service networks in the work. It is consisting of Deloitte, Ernst& Young (EY), PricewaterCoopers, KPMG. These firms are often times grouped together for a couple of reasons; each is comparable in size relative to the rest of the market, which includes in terms of revenue and workforce.
Also, they are considered equal in their ability to provide a wide scope of quality professional services to their clients and also for those who are looking to start a career in the professional services that they offer. Most accounting, they are each considered equally attractive networks one can work in due to the frequency with which the firms engage with Fortune 500 Companies.
Services Offered By The Big Four Accounting Firms
The Big Four Accounting Firms each offers clients with audit, assurance, taxation, management consulting, actuarial, corporate finance, and also legal services. An important or great majority of public companies as well as most audits of private companies are actually conducted by the Big Four Firms.
Overview Of The Big Four Accounting Firms
Let’s look at the overview of each of the accounting firms before moving to a brief history of them.
Deloitte Touche popular known as just Deloitte is a highly respected multinational professionals services network. It offers or provides clients from around the world with auditing, consulting, financial advisory, risk advisory, tax, and legal services. It actually the largest in terms of revenue among the Big Four.
EY is called Ernst & Young ClobalLimited Liability Partnership, just like Deloitte is a multinational professional services firm. It has its headquarters in London, England, UK. It is one of the biggest or largest firms in the world that offers professional services to the client. The firm offers assurance, financial auditing, tax, consulting, and advisory services to its clients from across the world.
PcW is a global network of firms that are delivering world-class assurance, tax, and consulting services for the client’s business. PricewaterCooper, as it is popularly known as PwC is one of the big Four accounting and auditing firms in the world. It is ranked as the second-largest firm for providing professional services in the world. And also a member of the Big Four Accounting Firms in the world.
KPMG International Cooperative is a multinational professional service that offers clients with professional services. It is also part of the Big Four Accounting Firms in the world. It offers financial audit, tax, and advisory to clients who are in need of help.
There you have a brief overview of the Big Four Accounting Firms in the world. These firms not only offer professional services to clients but also employ individuals that which to take a career in the services that they render.
Brief History Of The Big Four Accounting Firms
Accounting to Wikipedia, “Until the late 20th century. The market or business for professional services was dominated by eight networks which were nicknamed the “Big 8”. These 8 consisted of Arthur Andersen, Coopers &Lybrand, Deloitte Haskins & Sells, Ernst & Whinney, Peat Marwick Michell, Price Waterhouse, Touche Ross, and Arthur Young.
The biggest 8 firms reduced gradually due to mergers that happened between these firms. As well as the fall of Arthur Andersen, leaving four dominating the market at the turn of the 21st century. In the UK, 211, it was then reported that the Big Four account for audits of the companies in the FTSE 100 Index and 96% of the companies in the FTSE 250 Index. It is an index of the leading listing of companies. Such a high level of industry contraction has caused concern and also a desire among some in the investment community for the Competition &Markets Authority to consider breaking up the Big Four. In2018, October, the CMA announced that it would launch a detailed study of the Big Four dominance of the audit sector.
The Big Four Firms came about due to numerous mergers. Since in the 1980s, plenty of mergers and a major scandal involving Arthur Andersen reduced the number of major professional services companies or firms. That was how the Big 8, changed to the Big Four.
The insolvency of Arthur Andersen stemming from its involvement in the 2001 Enron Scandal, produced the Big Four. Which are Deloitte & Touche, Ernst &Young, KPMG, and PricewaterCoopers.
Revenue Of The Big Four Accounting Firms Worldwide In 2019
According to the Statistics carried by Statista; one of the biggest German online portals for statistics. This shows the revenue of the Big Four Accounting Firms worldwide in 2019. According to Statista “Deloitte was the largest of the big four firms in terms of revenue having generated approximately 46.2 US dollars in that year”.
Additional Information The Big Four Accounting Firms
The Big four accounting firm as you must have known by now consists of Deloitte, PricewaterCoopers (PwC), Ernst & Young (Ey), KPMG. These firms offer professional services such as auditing, assurance, corporate finance, and also legal service. Deloitte is the largest of the four firms, therefore making then the largest in the world in terms of revenue in2019. PwC was not far being with a revenue of 42.5 billion dollars. The leading three earned the highest share of their revenue in the Americas. Whereas KPMGwhich is the smallest of the four, earned the largest share of theirs I Europe, Middle East, and Africa.
In 2019, the Big Four Accounting Firms combined, employed more than one million people worldwide. The employees from Deloitte comprised the largest share. Statista also stated that “Close to 139, 500of Deloitte employees were located in the Americas”
PwC being the second-largest accountancy firm in terms of revenue employed close to 276, 000 people around the world. As of 2019, the largest share of employees was found in Western Europe, followed by the Americas and Asia.