Big 4 accounting firms in USA also dominate the world accounting market practice. Popularly known as the ‘big 4’ provide a pool of accounting services including taxation, external auditing, internal control assessment, management and assurance services to more than 80% of clients in the industry. In addition to providing a range of quality accounting services, the ‘big 4’ also employs thousands of accounting and auditing professionals. These professionals are sourced throughout the world. The ‘big 4’ originated from the ‘big 8’ but through a series of mergers, acquisitions and dissolution it gave rise to the Big 4. Each of the Big 4 Company act independently although they have an agreement to maintain high standards in the industry. We shall discuss Big 4 accounting firms (USA) in detail below.
Deloitte Touche Tohmatsu Limited
Deloitte tops the list of big 4 accounting firms in the USA and in the world. It came into being in 1845 by William Welch Deloitte in London. Over the years Deloitte has undergone a series of mergers and acquisitions from the original parent company to form the modern day company. In 2018, Deloitte made an aggregated profit of $43.2 billion. By 2017, Deloitte ranked as fourth largest private company in the US employing more than 286,200 professionals throughout the world. It provides a range of accounting related service including auditing, consultation, financial advisory, risk advisory, taxation and legal services.
PwC comes second in the list with a revenue turnover of $37.7 billion in 2017 financial year. PwC was formed by Samuel Lowell Price in 1849 in London. Over the number of years, PwC has undergone a series of organizational restructuring with the final merger between Price Waterhouse and Coopers & Lybrand in 1998 to form the modern day PwC. In 2010 PricewaterhouseCoopers shortened its name to PwC; however PricewaterhouseCoopers still remains the legal name of the company. The PwC is present in more than 150 countries in the world with an employee base of 236,200. PwC provides a wide range of services including IFRS reporting, consulting, auditing and assurance services among other services.
Ernst & Young
Ernst & Young comes in the third place of the Big 4 accounting firms in the USA. The Ernst & Young is a multinational professional accounting company with its headquarter office in London. Ernst & Young came into being in 1989 as a result of merger between Ernst & Whinney and Arthur Young. With a revenue turnover of $ 31.4 billion in 2017 financial year, Ernst & Young employs more than 247,570 professionals in more than 150 countries. Ernst & Young provides a range of accounting services including but not limited to assurance, advisory tax, advertisements, transactions and specialty services.
Klynveld Peat Marwick Goerdeler (KPMG)
KPMG closes the list of big 4 accounting firms in USA with presence in more than 150 countries and more than 197,260 employers. In the financial year ending 2017 KPMG had a revenue turnover of $26.4 billion. KPMG was founded in 1987 as a result of merger between Klynveld Main Goerdeler and Peat Marwick International. This resulted to a change of name to KPMG.