Few maxims are perceptible in today’s business world, among which “The Big 4” is the most noticeable. Amid thousands of biggest consulting enterprises, these four companies are recognized as dominant providers in consulting as well as professional services at a huge scale.
To give real service, you must add something which cannot be brought or measured with money, and that is sincerity and integrity.- Douglas Adams.
During this blog, we will explore the Big 4 in deep that includes various services provided by each firm and their successful path due to which they rule at the top of the consulting world.
What are the Big 4 Audit firms?
Former Big 8 accounting firms of the ’80s, that are (1) Arthur Andersen, (2) Arthur Young & Co., (3) Coopers & Lybrand, (4) Ernst & Whinney, (5) Deloitte, Haskins & Sells, (6) KPMG, (7) Touche Ross, and (8) Price Waterhouse, where Big 4 are the remaining players of accounting firms.
Merges, acquisitions and the scattering of one of the industry leaders Arthur Andersen deflated the former 8 into 4 in the aftereffect of the Enron and Worldcom scandals.
Big 4 commonly indicates the largest four accounting and auditing firms, that are PricewaterhouseCoopers, Deloitte, Ernst & Young, and KPMG. These are certified public accounting(CPA) firms that conduct audits for most of the corporations.(From)
In addition to conducting audits and other services, the Big 4 gives tax advising and distinct management services.All four firms work across a variety of industries, including They all work across multiple industries, covering aerospace, automotive, banking, construction, hospitality, pharmaceuticals, transportation, wealth management, media, government and public sector, manufacturing,oil and energy, financial services, healthcare, insurance, professional services, retail, telecommunication, any many more.
In the below picture, revenue of the Big Four accounting / audit firms, generatedworldwide in 2020, is displayed.It has been observed that the in 2020, Deloitte ruled over other biggest four accounting firms via generating total revenue about 47.6 billion US dollars
Revenue of Big 4 audit firms/ accounting firms worldwide in 2020, Source
In addition to that, combined revenue generated by all the firms is increasing constantly over the last decade, it is 157 billion US dollars in 2020.
Combined revenue generated by Big 4 across theglobe 2009-2020,
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Let’s look at them one by one!!!!!
1. KPMG
KPMG stands for Klynveld Peat Marwick Goerdeler, a merger of Klynveld Main Goerdeler (KMG) and Peat Marwick in 1987.
KPMG's consulting practice directs primarily around the three areas of Management Consulting, Risk Consulting, and Deal Advisory. Among the Big 4, KPMG extremely focuses on technical and analytical work.
It is a global network-thread of accounting firms that delivers audit, tax, advisory, and industry-specific services.
It employs around 219,000 professionals who are working together for giving quality services in 154 countries across the globe. In 2020, KPMG earned $29.22billion US dollars. (Source)
Similar to other services organizations, KPMG adds huge values to its people and renders qualitative services.
2. Deloitte
Deloitte, also known as Deloitte Touche Tohmatsu, was founded in 1845 by William Deloitte. It had travelled through the various number of mergers and reorganizations, keeping its brand name same that follows quality norms and give company values.
It has evolved as one of the leading firms in the world.
Its consulting firm practices basically in three areas that are: Human Capital, Strategy & Operations, and Technology.
The most extensive experience, Strategy & Operations, entails working with superior administrators to strategize and resolve complex problems.
The technology directs on concluding ways for readjusting clients to the huge transformations of their business, enhancing productivity, and secure steady operations.
Human capital contributes to research & development, analytics, and industry discussion for converging customers on how to configure and perform operations around all branches of the business.
In 2020, it earned $47.6billion US dollars and have almost 312,000 employees over 150 countries, that is manifesting excellence range of services.
Deloitte focuses on the services of most specific areas: Finance, Infrastructure Operations, M&A Restructuring, Supply Chain and Manufacturing Operations, Service Operations and Strategy.
3. Ernst & Young (EY)
Initially, Ernst and Whinney have merged with Arthur Young to make Ernst and Young in 1989 with two aims first, deploying accounting information and knowledge for making informed business decisions, and second, engaging excellent stuff with a delicate balance on character and personal advantage.
Ernst & Young is a global organization of member firms, each of which is the distinct legal entity, in approximately 150 countries that elementarily converges on assurance, advisory, tax and advisory services.
It employs people having professional skills and values of sincerity, honour, cooperation, enthusiasm, and motivation, that together make the core values of EY.
The firm also respects the knowledge and skill development, supporting around 284, 000 employees in attaining their potential by expert training and career development plans.
It earned $37.2billion US dollars in 2020,
EY Consulting works and focuses on the fields involving Education, Healthcare, Consumer and Industrial Products, Life Sciences, Oil and Gas, Information and Media, Technologies, Private Equity and Financial Services.
4. PricewaterhouseCoopers (PwC)
After the merge between Price Waterhouse and Coopers & Lybrand in 1998, PwC was created with the aim of delivering value services while authorizing and sustaining exceptional customer relations.
And in September 2010 merged organizations’ name was condensed to PwC in the form of rebranding attempt.
“Absolutely. We have a responsibility to perform procedures that are detecting fraud just like we have responsibilities to perform procedures to detect errors in financial statements.”- Dennis Nally, PwC Chairman
PwC is the second-largest audit firm in the context revenue as it reported $43.03billion US dollars of revenue in 2020.
PwC mainly converges on providing better assurance, consulting and tax services. It practices and leads to a huge space of the global advisory market.
It employs almost 276,000 working professionals in 158 countries around the world, however, this firm works locally in various countries.
Similar to other international companies, these independent recognised and regulated firms contribute significant values and standards.
Its promising services include Asset Management, Banking & Capital Markets,
Financial Services, Health Industries, Industrial Products, Insurance, Power & Utilities, Private Equity, Public Sector, Retail & Consumer, and Technology.
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Conclusion
Big 4 stands for KPMG, PwC, EY and Deloitte, these are the four largest professional services firms across the globe that gives an extensive range of services including audit, transaction advisory, taxation, risk advisory and actuarial services. The Big 4 performs audits on the majority of public and private companies throughout the world.
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For a short description, below are the services provided by big 4 firms;
Deloitte: Real estate, actuarial, economic consulting and financial advisory,
KPMG: Business consulting, financial advisory, and technology,
EY: Transactions, corporate finance, restructuring, valuations and business modelling
- PwC: Deals, legal vacation scheme, actuarial, and technology.
