Friday, September 11, 2015

The BIG 4 are the biggest

The fiscal year 2014 numbers are in, and the bragging rights for the Big Four accounting firm with the largest revenues go to . . .  Deloitte.

It’s the third time since the 2008 global financial crisis that the New York-headquartered company founded in London in 1845 topped the league table.

For all but one year from 2007 to 2012, PwC was the world’s biggest accounting firm, notching up revenues ahead of Deloitte, EY and KPMG. It was only in 2010 that Deloitte got to No. 1 – edging out PwC by the narrowest of margins, at US$9 million.

In 2013, the difference between Deloitte and PwC in revenues was some US$300 million in Deloitte’s favor. In 2014, Deloitte pulled ahead by a slightly smaller US$248 million.

But all four firms had another record year. Deloitte’s US$34.2 billion is its largest ever since 2009, when revenues for the Big Four as a whole fell by 7.4% in the wake of the 2008 global financial crisis. PwC’s 2014 sales of US$34 billion is similarly a record, as are EY’s US$27.4 billion and KPMG’s 24.8 billion.  

As we observed in previous articles, it’s more than just bragging rights. A public accounting firm with revenues in the double-digit billions is a formidable partner for any CFO, regardless of its ranking among the Big Four. And no other firm is likely to join the Double-Billion Club anytime soon. No. 5 BDO International reported global sales of US$7 billion in 2014 (from US$6.4 billion in 2013).

Cesar Bacani | Friday, January 09, 2015 from CFO Innovation

My comment:

The gap between BDO and big 4 is still huge with difference of US17billion. Big $ has changed their strategy by implementing group auditors where, if the group is audited by a Big 4, the subsidiaries around the world should follow the same. The fees were determined at group level. This makes the medium and small player not to get many MNC under their bucket.

Furthermore, when it comes to consultancy, there is no cap or regulation on the fees, which makes certain BIG4 to charge exorbitantly. With countries like UK removing audit requirement for SME, makes small firm to retire or pull out from the industry.

Wonder, whats the future of audit in Malaysia.  

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