Definition of Big Four:
The Big Four are the four largest accounting firms in the United States, as measured by revenue. They are Deloitte, Ernst&Young, PwC, and KPMG. Aside from auditing services, the Big Four offer tax, management consulting, valuation, market research, assurance, and legal advisory services. They are a leading source of tax law interpretation and experts on changes in accounting and auditing standards.
Through industry consolidation that began in 1989, what used to be the Big Eight has become the Big Four today. The eight, in alphabetical order, were Arthur Andersen, Arthur Young, Coopers & Lybrand, Deloitte Haskin & Sells, Ernst & Whinney, Peat Marwick Mitchell, Price Waterhouse, and Touche Ross — all U.S. or U.K. entities. Arthur Young combined with Ernst & Whinney and Deloitte Haskin & Sells merged with Touche Ross to reduce the group count to six. Price Waterhouse and Coopers & Lybrand then merged their practices making it five. Following the collapse of Arthur Andersen, where some individuals foolishly thought shredding Enron documents was a good idea, the five became the present-day four.
The four largest accounting firms that handle accounting services for a number of public and private companies. The Big Four includes Deloitte Touche Tohmatsu, Pricewaterhousecoopers, Ernst & Young, and KPMG. The Big Four was formed in 2002 after a series of mergers, including the collapse of Enron, reduced the original eight down to four.
How to use Big Four in a sentence?
- A hidden barrier to the passing of a flat tax is the powerful lobbying capacity of the big four ; they would lose billions if the tax code were simpler.
- The big four businesses were not to be messed with, because they could make, or break a small business like ours.
- If your company gets really big and you cant handle all of the accounting it may be time to contact the big four .
Meaning of Big Four & Big Four Definition