Big 4 Accounting Firms

    If you are on the way to becoming a successful accountant, you are sure to hear the name of ”Big 4”, the biggest four accounting firms around the world. They deal with various accounting and auditing business for lots of global companies, actually, they audit for more than 80% US companies[1]. It can be said that today’s accounting market is dominated by only these four companies:

1.Deloitte LLP

    Deloitte is a brand that has thousands of independent accounting firms under this name. These firms are the members of Deloitte Touche Tohmatsu Limited (DTTL). They deal with various accounting business including consulting service, auditing, risk management and taxation[2]. Deloitte has a history of 150 years and it provides the best consulting service for many world-famous companies.   

2.PwC LLP

    The full name of PwC is PricewaterhouseCoopers. It’s the second large accounting firm in the world, right after Deloitte. It is a network of firms in 157 countries with more than 223,000 employees. 
PwC helps organizations and individuals clarify their value by providing services in assurance, tax and advisory[3]. Also, PwC is considered to be one of the best international companies to work for. 

3.Ernst & Young LLP

    Ernst & Young was merged by two companies in the UK in 1989. Like other companies of the Big 4, EY provides worldwide accounting services in more than 150 countries with over 700 offices. EY provides a wide range of services from accuracy to tax transaction, which allows the company to gather a very diverse group of employees.
Moreover, it is worth mentioning that Ernst & Young has the fastest overall revenue growth these years[4].   

4.KPMG LLP

    KPMG is the last one of Big 4 accounting firms. Although it has the lowest revenue compare to the other three companies, it is still growing steadily and attracting new partners. 
    KPMG mainly provides three services which are audits, advisory services, and taxes.



**Why they are all LLP?**

    LLP means Limited Liabilities Partnership, which means partners of the company are only responsible for the loss caused by their own mistakes. Accounting people often deal with big companies that have millions or even billions of dollars value so once accountants make mistakes, they need to pay a huge amount of money for the damage which is very risky for accounting firms. Therefore, the structure of LLP can help to lower the risk; furthermore, every single accounting office is independent and only take charge of their own losses. Actually, not only accounting firms prefer LLP, other professional service companies like law offices are also LLP as well. 
________________________________________
1.http://big4accountingfirms.org/
2.Deloitte https://www2.deloitte.com/us/en/pages/about-deloitte/articles/about-deloitte.html
3.PWC https://www.pwc.com/gx/en/about.html
4.http://news.efinancialcareers.com/ca-en/204621/working-for-pwc-deloitte-ey-and-kpmg-whats-the-difference/

Comments

  1. ChristalMay 18, 2017 at 6:14 AM

    The blog introduces four accounting firms which are biggest in the world, and they are all LLP because LLP only need to afford the risk and mistakes which is made by themselves. Therefore, this structure can lower the risk.

    ReplyDelete
  2. CynthiaMay 18, 2017 at 6:19 AM

    The blog talks about 4 accounting firm and found the similarity between the, which ii all firm are LLP. Then found out the reason why they are all LLP. The reason is that has lower risk as they do not have to pay for their mistakes. I love it.

    ReplyDelete
  3. UnknownMay 18, 2017 at 6:28 AM

    After reading your blog, I learn about "Big Four", and you also explain why they are all LLP. Finally, I know the structure of LLP can help to lower the risk.

    ReplyDelete
  4. UnknownMay 18, 2017 at 6:31 AM

    It gives me the comprehensive view of accounting and get into this career, accountant. I found the last paragraph is quite interesting, it just clearly explained the LLP and the reason for that these companies are limited liabilities partnership. Carry on!

    ReplyDelete
  5. UnknownMay 18, 2017 at 6:38 AM

    I like your blog，your blog introduce the four famous accounting firm in the world. This extends the reader's knowledge of accounting.I have great interest in the accounting firm PWC because it is a multinational company.

    ReplyDelete

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