History of Big 4 Auditing firm
The Big 4 accounting and auditing firms are the four largest professional services networks in the world, offering audit, assurance, tax, and consulting services. They handle the vast majority of audits for publicly traded companies as well as many private companies. The Big 4 firms are also involved in many other aspects of business, including management consulting, financial advisory, and actuarial services.
The Big 4 accounting and auditing firms are:
Deloitte Touche Tohmatsu
Ernst & Young
KPMG
PricewaterhouseCoopers (PwC)
The history of the Big 4 accounting and auditing firms can be traced back to the early 20th century. The four firms that would eventually make up the Big 4 were all founded in the years leading up to World War I.
In 1914, Ernst & Ernst was founded in Cleveland, Ohio. The firm later merged with Arthur Young & Co. in 1989 to form Ernst & Young.
In 1918, PricewaterhouseCoopers was formed through a merger of two London-based accounting firms, Price Waterhouse and Coopers & Lybrand.
The third firm that would become part of the Big 4, KPMG, was founded in Amsterdam in 1897 as Klynveld Main Goerdeler.
The fourth firm, Deloitte Touche Tohmatsu, was created in 1995 through a merger of two Japanese firms, Deloitte Haskins & Sells and Touche Ross.
Today, the Big 4 accounting and auditing firms are global leaders in their respective fields. They have a significant presence in all major financial centers around the world and employ hundreds of thousands of people.
The Big 4 firms are regularly ranked among the most prestigious employers in the world. They are also considered to be some of the most profitable professional services firms. In recent years, the combined revenue of the Big 4 has exceeded $100 billion.
While the Big 4 accounting and auditing firms are widely respected, they have also been criticized for their size and power. Critics argue that the dominance of the Big 4 creates a conflict of interest, as they are both audit clients and service providers to many of the world’s largest companies.
The Big 4 accounting and auditing firms have also been accused of being too Big to Fail, meaning that their size and importance make them immune to prosecution. This was most famously illustrated in the case of Enron, where the accounting firm Arthur Andersen was found guilty of obstruction of justice after shredding documents related to the energy company’s fraud.
Despite these criticisms, the Big 4 accounting and auditing firms remain the preeminent providers of professional services in the world. They are likely to continue to dominate their respective markets for the foreseeable future.
The Big 4 accounting and auditing firms are the four largest professional services networks in the world, offering audit, assurance, tax, and consulting services. They handle the vast majority of audits for publicly traded companies as well as many private companies. The Big 4 firms are also involved in many other aspects of business, including management consulting, financial advisory, and actuarial services.
History of Big 4 Auditing firm
