Their offerings encompass traditional fields such as auditing and taxation, as well as consulting and financial advisory services. Their global presence is marked by a network of offices in key financial centers around the world, ensuring that they can offer localized services while maintaining a global perspective. This extensive reach allows them to harness a wealth of knowledge, expertise, and resources to tackle complex business challenges, making them trusted advisors in their field. Ernst & Young, also known as EY, is the third largest big 4 CPA firm with over 700 offices located in over 150 countries around the world. Its global headquarters is located in the UK where make or buy decision explained Harding and Pullein originally found it in 1849. Like all large accounting firms, EY went through a series of mergers over the years.
The firm is therefore particularly attractive to those who value high ethical standards and social responsibility in their work. PwC has since grown to become one of the largest professional services networks in the world, offering a wide range of services across its assurance, tax, and advisory practices. In assurance, PwC continues to lead with its audit services, providing independent assurance to stakeholders about the accuracy and integrity of financial statements. This core service is complemented by a robust advisory practice that helps clients manage and mitigate risk, improve performance, and solve complex business problems.
Deloitte traces its origins back to 1845, when William Welch Deloitte opened his own accounting firm in London, becoming the first person to be appointed as an independent auditor for a public company. Deloitte’s early emphasis on auditing services helped set the foundation for the modern accounting profession. The firm expanded its services and geographic reach over the years, merging with other entities and establishing offices worldwide. The Big 4 accounting firms each have a storied history that has significantly contributed to their evolution into the global powerhouses they are today. These firms have not only played a pivotal role in shaping the accounting and consulting industries but have also adapted to the changing dynamics of global business, ensuring their services remain relevant and in high demand. The Big 4 provide a comprehensive array of services that cater to various aspects of business operations and financial management.
It consists of three different courses starting with the basics of tax law and income tax return ending with advanced income tax compliance. EY makes a concentrated effort to find highly qualified and ambition college students to enroll in their internship programs and leadership conferences. EY focuses on hiring a larger percentage of their interns because it works. They can train students and test them out for a trial run during the internship. After they are fully trained and graduate college, they become full time team members.
KPMG offers a wide range of services that address the critical needs of businesses across various sectors. In audit, KPMG continues to uphold the highest standards of independence and integrity, providing assurance on the fairness and accuracy of financial statements. The “Big 4” refers to the four largest accounting firms and includes Deloitte, PwC, KPMG, and EY. All four companies provide audit, assurance, consulting, financial advisory, risk management, and tax compliance services. Today, Deloitte offers a broad spectrum of professional services, including auditing, tax, consulting, enterprise risk, and financial advisory services. It has distinguished itself as a leader in professional services, not just in terms of revenue and size but also through its commitment to innovation and excellence.
Arthur Young merged with Ernst & Whinney and Touche Ross merged with Deloitte, Haskins & Sells reducing the big 8 accounting firms down to the big six. Although revenues have increased over the past three years, KPMG’s growth is the slowest out of the big four accounting firms. Tax and audit service revenue stayed about the same for the past three years with advisory fees increasing slightly. Their tax and assurance service sectors have remained about the same year of year, but their advisory and consulting business keeps growing year after year. Although PwC did beat D&T’s gross revenue number in 2015, D&T does employ more professionals and has generated more revenues two out of the last three years.
Ernst & Whinney merged with Arthur Young to form Ernst & Young; and Deloitte, Haskins & Sells with Touche Ross to form Deloitte Touche. Then in 1998, Price Waterhouse merged with Coopers & Lybrand to form PricewaterhouseCoopers, famously known as PwC. The Big 4 used to be known as Big 8 made up of (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. It was after a series of mergers and dissolutions that brought about the elite four. Deloitte has a heavy focus on the quality of their people whilst the other three balance people, environment, and learning opportunities between them.
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This investment in technology, coupled with EY’s global network and deep industry knowledge, enables the firm to offer insights and strategies that drive growth and value creation. EY’s evolution is a testament to its ability to adapt and grow amidst the complexities of the global business environment. The firm has consistently expanded its services beyond traditional auditing to include a wide array of consulting services, addressing the multifaceted challenges faced by businesses today. EY’s commitment to delivering quality and integrity in its services has helped solidify its reputation as a trusted advisor to companies worldwide.
- This organization remained unchanged until 1989 when the three partners merged with Touche Ross to form Deloitte and Touche.
- Let’s start with Deloitte – colloquially referred to as “the dot’ due to their strict branding guidelines around the color, size, and shape of the dot at the end of “Deloitte” in their logo.
- In recent years, the Big 4 have significantly bolstered their consulting divisions, marking a strategic shift towards offering more diversified management consulting services.
- Here, about 44% of total revenue per fiscal year is generated from auditing, which is well ahead of all other competitors.
Revenue comparison charts
PwC’s evolution reflects its adaptability and commitment to meeting the ever-changing needs of its clients. By continually expanding its service offerings and investing in technology and talent, PwC has solidified its position as a leader in both assurance and advisory services. The firm’s service spectrum has expanded significantly to include strategy consulting through its Strategy& division, cybersecurity and privacy services, digital transformation, and sustainability consulting, among others. PwC has made substantial investments in technology and innovation, leveraging data analytics, artificial intelligence, and blockchain technology to offer cutting-edge solutions to clients across various industries.
It employs people equipped with professional skills and values of integrity, respect, teamwork, enthusiasm, and motivation. The work environments and people also score highly across the four firms. With huge revenues, they can afford luxury offices in popular areas of the cities in which they are present. Taking a look at the keyword counts we can see what is good and bad about each of the big 4 accounting firms from the perspective of the employees. At Deloitte, the so-called Audit & Assurance business is in first place, followed by Risk Advisory.
Guide to the Big 4 Accounting Firms: Deloitte, PwC, EY, KPMG
Deloitte invests heavily in technology and research, applying cutting-edge solutions to both traditional and emerging business challenges. This approach has allowed Deloitte to remain at the forefront of the industry, helping clients navigate complex business landscapes with strategic insight and tailored solutions. These firms provide an extensive range of accounting and auditing services including audit, taxation, management and business consultancy, mergers and acquisitions, and risk assessment and control. Their influence stretches across the globe, making them indispensable players in the international business arena. KPMG’s foundation and subsequent growth reflect its adaptability and foresight in responding to the needs of the global business environment.
PwC (PricewaterhouseCoopers)
Each firm boasts a rich history of innovation, growth, and adaptation, enabling them to meet the evolving needs of their clients in an ever-changing business environment. The Big 4 offer a multitude of career paths across their audit, tax, advisory, and consulting divisions. Employees can specialize in a specific industry sector, develop expertise in a niche service area, or pursue roles in internal firm services such as HR, marketing, or IT. The firms support career mobility, encouraging professionals to explore different roles and even international assignments. EY’s dedication to innovation is evident in its approach to tackling emerging business challenges. The firm has invested heavily in technology, data analytics, and artificial intelligence to enhance its service delivery and provide forward-thinking solutions to its clients.
The big four accounting firms, most commonly referred to as “The Big 4,” are the world’s largest and most prestigious audit, tax, and professional service companies. KPMG, on the other hand, is increasingly focusing on the consulting business. Since an audit mandate may not be accepted in parallel with consulting, the share in auditing is accordingly much lower. KPMG is investing heavily in digital transformation and the use of technology to improve its services. This offers employees the opportunity to work in an innovative environment and familiarize themselves with the latest technologies and digital tools.
Specialized hires typically possess deep expertise in specific industries or functional areas, such as digital transformation, risk management, or tax strategy. Generalist positions, on the other hand, offer a broader scope of work, allowing professionals to work across different projects and sectors, providing a holistic view of business challenges and solutions. This diversity in hiring ensures that the Big 4 can address the nuanced needs of their vast client base, from startups to global conglomerates. Pricewaterhouse Coopers, or PwC for short, is the world’s second largest accounting firm with over 750 offices in more than 150 countries.
Showcasing a proactive approach to learning, adaptability, and a commitment to ethical standards will stand candidates in good stead. Networking, attending career fairs, and engaging with the firms’ representatives can also provide a competitive edge. A standout resume and cover letter are crucial for making a strong first impression. Candidates should emphasize their relevant experiences, demonstrating how they’ve developed skills applicable to the services offered by the Big 4. Highlighting achievements with quantifiable results, leadership experiences, and any relevant certifications or technical proficiencies can set applicants apart. Tailoring the cover letter to the specific firm and role, showing a genuine understanding of the firm’s values and how you can contribute to their goals, is equally important.
