The Big 4 Accounting Firms: What You Need to Know

In this post, let’s discuss the Big Four companies in the world, what they do, and why so many businesses rely on them. The Big Four offer competitive starting salaries, which can vary slightly depending on the firm, business area, and location. In addition to base pay, bonuses and other benefits can significantly boost total compensation. While KPMG, PwC, EY, and Deloitte have a lot in common, there are some key differences between them. In this section, we’ll take a closer look at each firm, compare some key figures, and highlight what makes each one stand out.

History of mergers

A CPA, or Certified Public Accountant, is a professional who has earned a CPA license through education, experience, and examination. For example, the Institute of Chartered Accountants of Pakistan (ICAP) regulates the CA (Chartered Accountancy) qualification in Pakistan. Therefore, all CPA firms in Pakistan are contractually obliged to recruit and train accountants with ICAP. Arthur Young combined with Ernst & Whinney while Deloitte Haskin & Sells merged with Touche Ross to reduce the group count to six. Then, Price Waterhouse and Coopers & Lybrand merged their practices, makingthe total five.

Revenue of the Big Four accounting/audit firms worldwide in 2024, by function

It’s a key player in cloud and data analytics and is often seen as the innovation engine among the Big 4. In 2002, “Big Eight” firm Arthur Andersen was discovered to have shredded documentation in an effort to hide Enron’s falsified financial numbers. One of the largest and most reputable firms at the time, it ultimately collapsed due to the scandal.

• Known worldwide as KPMG, this company has offices in more than 143 countries and employs more than 265,000 people.
• EY remains a key player in consulting and advisory services in India, supporting clients across various sectors.
• While trailing behind PwC and Deloitte in employee ratings, the company maintains a strong reputation within the industry.
• Just like PwC, KPMG was also formed after the merger of multiple firms in 1987.

At the top of the Big 4 is Deloitte, the world’s largest accounting firm that has 415,000 employees. In 2022, according to Statista, Deloitte grossed its highest annual revenue ever, earning more than $59 billion across what is the big 4 accounting all four service streams. The company is headquartered in London, England, and currently overseen by Global Chief Executive Officer Joseph B. Ucuzoglu.

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• The hierarchy structure in Big 4 (PwC, Deloitte, EY, and KPMG) can confuse young professionals.
• The firm also offers flexible work arrangements and actively promotes a healthy personal and professional life balance, earning them well-deserved recognition.
• At Keiser University Graduate School, we offer a wide range of accounting and finance degree programs that are rooted in academia yet driven forward by a skills-based approach to education.
• The Big 4 accounting firms are the largest accounting firms in the world, as measured by the amount of revenue earned annually.
• PwC works with large organizations as well as individuals to provide Assurance, Tax and Auditory services.

Ultimately, these best practices are key to becoming a successful accounting firm that builds trust with its clients. For many large public companies, auditing work is being performed by these top firms. PwC reported global revenues of $55.4 billion for the year ending June 2024, growing by 4.3 percent from 2023. Despite facing challenges in the Asia-Pacific region, PwC”s business in India performed well, contributing to the firm”s overall growth. The firm expanded its global workforce to 3.7 lakh employees and also invested $1.5 billion in AI capabilities.

Like the others, it covers audit, tax, and consulting services – with a particular focus on audit, where it ranks as the global market leader. Founded in 1845 by William Welch Deloitte in London, Deloitte is the largest of the Big 4 by both revenue and headcount. Its services include audit, tax, consulting, and risk advisory – especially strong in strategy consulting through its subsidiary, Monitor Deloitte. The second largest of the Big 4 accounting companies ($50.3 billion global revenue) is PwC. The busy season typically means long hours of auditing or tax compliance work to meet reporting deadlines for clients.

According to the leaders, the audit firm has the capability to prosper and grow faster as a separate entity. Learn how CEOs are using employee training programs to close skill gaps, boost retention, and align talent development with business goals. These four companies set the pace for much of the financial and consulting world today.

Over the years, many accounting firms tried to dethrone the Big 4 without success. This is primarily due to the legacy of the global CPA firms and the trust embedded within them by millions of customers worldwide. Deloitte offers formal learning programs, enabling you to enhance your knowledge through education. Moreover, experiential development roles and project-based activities provide valuable hands-on experience.

Their clients include Fortune 500 companies and small and medium-sized businesses. The Big 4 are known for their commitment to excellence and have earned a reputation for integrity and trustworthiness. They employ thousands of people around the world and attract top talent from universities, law schools and business schools. They also provide internship opportunities, which can help students gain valuable insights into the accounting profession.

As a member of the PwC team, you’ll enjoy a vast range of personalized benefits and rewards that adapt to your changing life and needs. Because the company consistently earns high satisfaction ratings from employees and is regarded as the best place to work. After successfully and diligently serving in the Big 4 and transitioning through different roles for years, you may have a chance to become a partner.