THE BIG FOUR

PRESENTED BY :-
RIJUL GOYAL
RAHUL GARG
RASHI DUBEY
RITESH JINDAL
ROHAN SURI
IBS GURGAON

What is BIG FOUR?
 Big Four are the four largest auditing firms in the world, they
are alternatively the largest professional service network, which
provide services like audit, assurance, tax, consulting, advisory,
actuarial, corporate finance and legal services.
 They handle the accounts of all the major companies in the
world which are listed on any of the exchange bar. ( Either
Public or Private)
 It is reported that he big four audit 99% of the companies in the
FTSE 100, and 96% of the companies in the FTSE 250 Index.
 These companies provides massive employment and career
opportunities to accountants and auditors around the world.

Name of these 4 big giants?
PWC ( PricewaterhouseCoopers)
DELOITTE ( Deloitte Touche Tohmatsu
Limited)
KPMG ( Klynveld Peat Marwick
Goerdeler)
E&Y ( Ernst and Young)

Evolution of this companies over the period of
time?
 In 20th century, this firms were called the Big Eight. The name
of the companies are as follows:
1. Arthur Andersen.
2. Coopers and Lybrand.
3. Ernst and Whinney.
4. Deloitte Haskins & sells.
5. Peat Marwick Mitchell.
6. Price Waterhouse.
7. Touche Ross.
8. Arthur Young.
In 1987, Peat Marwick Mitchell merged with the Klynveld Main
Goereler group to become KPMG Peat Marwick, today which is
known as KPMG.

 Big Six
In 1989, Ernst & Whinney merged with Arthur Young to form E&Y
and Deloitte, Haskins and Sells merged with Touche Ross to form
Deloitte & Touche.
 Big Five
In 1998, Price Waterhouse merged with Coopers & Lybrand to
form PricewaterhouseCoopers.
 Big Four
In 2001, Arthur Andersen which was the auditing firm of Enron
was obstructed of justice for shredding the documents related to
the auditing, which lead to the termination of the license and
further to the closure.

FIRM REVENU
ES
EMPLOY
EES
REVENU
ES/EMPL
OYEE
FISC
AL
YEAR
HEAD-
QUARTER
S
PWC $35.4 Bn 208,100 $169,892 2015 UK
DELOI
TTE
$35.2 Bn 225,400 $156,167 2015 US
ERNST
&
YOUN
G
$28.7 Bn 212,000 $135,517 2015 UK
KPMG $24.4 Bn 173,965 $140,488 2015 NETHERL
ANDS

PRICEWATERHOUSECOOPER
OPERATIONS -
Assurance, Tax
and Advisory
services.
CHAIRMAN -
Dennis M Nally.
WEBSITE –
www.pwc.com
HEADQUARTER –
LONDON.

HISTORY
The company traces its roots to 1849,
when Samuel Price established an
accounting firm. Five years later,
William Cooper opened his own
company. Those firms eventually
became Price Waterhouse and
Coopers & Lybrand, which merged in
1998 to form
PricewaterhouseCoopers. The trading
name was shortened to PwC in
September 2010 as part of a
rebranding.

 PricewaterhouseCoopers (trading
as PwC) is a multinational professional
services network headquartered in
London. It is the largest professional
services firm in the world.
 PwC is a network of firms in 157
countries, 756 locations.
 The company's global revenues were
$35.4 billion in FY 2015, of which $15.2
billion was generated by
its Assurance practice, $8.9 billion by its
Tax practice and $11.3 billion by its
Advisory practice.

SERVICES
PwC is organized into the following three
service lines :-
 Assurance (45%)
 Advisory (29%) – mainly consulting
activities which covers Strategy,
Performance Improvement, Transactions
Services, Business Recovery Services,
Corporate Finance, Business Valuation,
Sustainability and Crisis Management in a
range of specialist areas such as
accountancy and actuarial advisory.
 Tax (26%) – international tax planning and
compliance with local tax laws, customs,
human resource consulting, legal services
and transfer pricing.

CLIENTS
 Clients of PWC range from the world’s
leading multinational companies to
new and growing enterprises, from
large family businesses and
governments to NGOs and private
individuals.
 PwC’s global practice leverages its
extensive experience in the industry to
help companies solve complex
business challenges with efficiency
and quality.

KPMG
KPMG operates as a global
network of independent member
firms offering audit, tax and
advisory services; working closely
with clients, helping them to
mitigate risks and grasp
opportunities.

HISTORY
 The firm's history dates back to 1870
when William Barclay Peat joined an
accounting firm in London and took it
over, as William Barclay Peat & Co., in
1891.
 In 1877 accountancy firm Thomson
McLintock opened an office in
Glasgow.

 Then in 1987 KMG and Peat
Marwick joined forces in the
first mega-merger of large
accounting firms and formed a
firm called KPMG in the US,
and most of the rest of the
world.

KPMG AUDIT APPROACH
Perform IT Audit for FY 2014 -15
• IT General Controls
• IT Application Controls
Purpose
• Gain assurance over internal controls in place
over IT systems to limit the risk of material
misstatement to the financial statements
• Reliance on IT system controls over
computerized output reduces substantive
procedures required for financial statement audits

SERVICES
KPMG is organised into the following three service
lines (the 2014 revenue shares are listed in
parentheses)
Audit (42%)
Advisory (37%)
Tax (21%)
Tax arrangements relating to tax avoidance and
multinational corporations and Luxembourg which
were negotiated by KPMG became public in 2014 in
the so-called Luxembourg Leaks.

INTRODUCTION
 Deloitte Touche Tohmatsu Limited is one of the largest
professional services organizations in the world and the
largest accounting firm in the United States.
 225,400 staff at work in 140 countries, delivering audit, tax,
consulting and financial advisory services through its member
firms.
 Global headquarters located in Paramount Plaza, Midtown
Manhattan, New York City, New York.
 Each DTTL member firm is structured differently in
accordance with national laws, regulations, customary
practice and other factors.

MERGER
 In 1952 Deloitte merged with Haskins and Sells to form
Deloitte, Haskins and Sells.
 In 1989 Deloitte Haskins and Sells in the USA merged
with Touche Ross to form Deloitte and Touche.
 In 1995,the partners of Deloitte and Touche decided to
create Deloitte and Touche Consulting Group.
 In 2002 ,Arthur Andersen’s UK practice, the firm’s
largest practice outside the U.S., agreed to merge
with Deloitte’s UK practice.
 The firm also took over the UK property consultants
Drivers Jonas in January 2010.

SERVICES
Audit and Enterprise Risk Services
Consulting
Financial Advisory
Tax

Deloitte’s Audit and Enterprise
Risk Services
Security and privacy
Mergers and Acquisitions Services
Internal Audit Transformation
Financial Accounting and Reporting
Services

CONSULTING
Strategy and Operations
Technology

Financial Advisory Services
Real Estate Consulting
Capital Project Consulting
Business Valuation
Business Intelligence services

TAX
Financial Accounting and Reporting-
Income Taxes
Global Employer Services
Private Client Advisors
Transfer Pricing

INTRODUCTION
 Current firm was formed by a merger of Ernst &
Whinny with Arthur Young & Co. in 1989.
 Was known as Enrst & Young until 2013, when it
underwent rebranding to EY.
 Number of Employee – 2,12,000
 Revenue(2015) – US$ 28.7 Billion
 Headquarters - London
KEY PEOPLE
• Chairman & CEO – Mark Weinberger
• Global COO – John Ferraro
• Chairman India – Rajiv Memani

SERVICES
 ASSURANCE
(41%)
Professional
Services
Decisions
Audit
 Revenue from this
service alone was
about US$ 11.3
Billion.
 Tax (26%)
Computation of tax
Calculation of
income and profits
service was about
US$ 7.5 Billion.

SERVICES
 Advisory Services
(24%)
Analysis of
performance
Merger and
acquisitions
Selling low performing
units
service was US$7.3
Billion.
 Transaction Advisory
Service (9%)
Managing working
capital
Raising of capital
Investment of idle
capital
service was US$ 2.5
Billion.

THE BIG FOUR

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THE BIG FOUR