Big Four Overview: The Big Four (also written Big 4) public accounting firms dominate the sector. Despite their size, they are organized as partnerships rather than as corporations.
The Big Four are orders of magnitude larger than the next biggest competitors, in terms of employees, revenues, and numbers of Fortune 500 clients. They are the result of consolidation in the public accounting sector. The Big Four include:
The Big Eight: Through the 1980s public accounting boasted a Big Eight collection of dominant firms. It was reduced to a Big Four after:
- Deloitte Haskins & Sells merged with Touche Ross Tohmatsu
- Arthur Young merged with Ernst & Whinney
- Price Waterhouse merged with Coopers & Lybrand
- Arthur Andersen was forced out of business by expensive lawsuits alleging audit malfeasance, notably in the Enron and WorldComm scandals of 2002.
Big Four Services: The Big Four offer a variety of services, including, but not limited to:
- Corporate audit
- Corporate tax services
- Business consulting services
- Tax preparation for wealthy individuals
- Family office services
Bottom Line for Financial Careers: Even if you do not pursue a career within public accounting, a period of service in the Big Four (including an internship) can be a valuable enhancement to your resume, whatever your future career path, given the prestige of these firms.
