Five years of losses to second-tier firms. By CPA Trendlines In what the world’s leading China-watcher in accounting calls “bad news for the Big Four,” KPMG was dropped a notch and EY was pushed out of the top four rankings by Chinese-owned firms. Paul Gillis, PhD, CPA, and Professor of Practice at Peking University’s Guanghua School of Management, termed the new rankings “bad news for the Big Four,” adding, “The Big Four had better find their game soon. If the trends of the past five years continue, China may be the place where the Big Four are beaten by the second tier.”
Topic: Big Four
It started as a rivalry between two brothers. One of them worked at one of the Big Four (still does). And he was always making jokes about the other firms’ scandals.
Get the full report in an instant download. [Free to PRO members.] Driven by improving economic circumstances, the Big Four are geared for revenue growth of 5% to 8% in 2013, with particularly good performances expected in advisory, Asia and even North America.
Should the world worry about mixing audit and consulting? Amid concerns among lawmakers worldwide that the audit function was being diluted by consulting, Deloitte Touche Tohmatsu is reporting $31.3 billion in worldwide revenue for the year ended in May, an 8.6% advance for the year and the firm’s strongest increase since 2008. The revelations drew some sharp reactions. “It is hardly news that the Big Four accounting firms get bigger nearly every year,” says The Economist. “But where they are growing says a lot about how they will look like in a decade, and the prospects worry some regulators and lawmakers.”
And a Washington lobbyist. But is he exactly what E&Y needs as regulators bear down on the Big Four?
Rebound led by growth in emerging nations. The years 2009 and 2010 may have been tough years for the Big Four amid a global financial crisis. But they clearly rebounded in 2011. And, the authors of a new report say, “The outlook for 2012 and beyond is quite optimistic.”