International AuditingOrganizations – Big FourMade byYuriy Stakh
Big Four1. Deloitte Touche Tohmatsu2. PwC3. Ernst & Young4. KPMG
The Big Four are the four largest internationalaccountancy and professional services firms, whichhandle the vast majority of audits for publiclytraded companies as well as many privatecompanies, creating an oligopoly in auditing largecompanies.
History of Big Four Big Four was once known as the "BigEight“ (until 1987), and was reducedto the "Big Five" by a series ofmergers (1998). The Big Five becamethe Big Four after the demise ofArthur Andersen in 2002, following itsinvolvement in the Enron scandal.
History of Big FourBig Eight included:1. Arthur Andersen2. Arthur Young & Co.3. Coopers & Lybrand4. Ernst & Whinney5. Deloitte Haskins & Sells6. Peat Marwick Mitchell (then KPMG)7. Price Waterhouse8. Touche Ross
Big Four -Legal structureNone of the Big Fouraccounting firms is asingle firm. Each is anetwork of firms, ownedand managedindependently, whichhave entered intoagreements with othermember firms in thenetwork to share acommon name, brandand quality standards.
Deloitte Touche Tohmatsu Limited Deloitte was founded in 1845 in London byWilliam Welch Deloitte. Nowadays Deloitte, isthe largest private professional servicesorganization in the world. According to theorganizations website as of 2010, Deloitte hasapproximately 170,000 staff at work in morethan 140 countries, delivering audit, tax,consulting, enterprise risk and financialadvisory services through its member firms.
Deloitte Touche Tohmatsu Limited Deloitte globalheadquarters is located inParamount Plaza,Midtown Manhattan, NewYork City, New York. Company’s revenue for2010 was $26,6 billion. The CEO of DTTL is BarrySalzberg
Deloitte Touche Tohmatsu Limited Services:1. Audit and Enterprise Risk Services: Provides theorganizations traditional accounting and auditservices.2. Consulting: Assists clients by providing services inthe areas of enterprise applications, technologyintegration etc.3. Financial Advisory: Provides corporate financeservices to clients.4. Tax: Helps clients increase their net asset value,undertake the transfer pricing and international taxactivities of multinational companies.5. Other Services: provides specialized services toclients in the fields of International FinancialReporting Standards (IFRS).
PricewaterhouseCoopers PwC is a global professional services firm. It isthe worlds second-largest professional auditservices firm. It was founded in London in1849. It has offices in 757 cities across 154countries and employs over 175,000 people. Ithad total revenues of $26.6 billion in 2010, ofwhich $13 billion was generated by itsAssurance practice, $7 billion by its Taxpractice and $6 billion by its Advisory practice.
PricewaterhouseCoopers PwC’s globalheadquarteres islocated in London,United Kingdom. As of 2010 it wasthe seventh-largestprivately-ownedorganisation in theUnited States.
Ernst & Young Ernst & Young (EY) is one of the largest professionalservices firms in the world it was founded in 1849. Ernst& Young is a global organization of member firms inmore than 140 countries. EY employs over 141,000people. It had total revenues of $21.3 billion in 2010.
Ernst & Young Ernst & Young is headquartered in London, UK. It was ranked by Forbes magazine as the 9thlargest private company in the United States in2010. The firms name arises from the global mergerbetween Ernst & Whinney and Arthur Young in1989.
Ernst & Young EY has four main service lines:1. Assurance (47%): comprises FinancialAudit, Fraud Investigation and ClimateChange & Sustainability Services.2. Advisory Services (17%): consisting of foursubservice lines: Actuarial, IT Risk andAssurance, Risk, and PerformanceImprovement.3. Tax Services (27%)4. Transaction Advisory Services (TAS) (9%):deals with companies capital agenda -preserving, optimizing, investing andraising capital.
KPMG KPMG is one of the largest professionalservices firms in the world it wasestablished in 1870. It employs 138,000people and has three lines of services:audit, tax and advisory.
KPMG KPMG global headquarters is located inAmstelveen, Netherlands. KPMG employs over 138,000 people.
KPMG KPMG offers the following services:1. Audit (Financial Statement Audit,Regulatory Audit).2. Tax (Business and Personal Taxservices).3. Advisory: KPMGs advisory servicesare organized into three themes(growth, governance andperformance).