Deloitte Named Top Firm in Survey

The Deloitte firm has jumped over Pricewaterhouse Coopers (PwC) in a global survey to be named the world’s top accounting firm in terms of money earned. The International Accounting Bulletin noted that the Big 4 remain the same, dominating more than two thirds of the market. The Big 4 includes Deloitte, PwC, KPMG and Ernst & Young (EY).

Deloitte’s reported $32.4 billion in fee income last year, while PwC reported $32 billion. EY had $25.9 billion and KPMG had $23.4 billion. The “top” designation might be short-lived, since PwC is mid-takeover of Booz & Co, which would increase PwC’s revenues by $1 billion.

A new law is coming into effect in 2016 that will require accountants to be changed every 10-20 years, an attempt to prevent the development of relationships that could lead to issues. Unfortunately for the smaller firms, it seems likely that the switching will simply move between the 4 top firms. Some feel that the reform is not robust enough to make competition reach to the mid-tier firms. It is, however, believed that some of the smaller firms will benefit from the reforms by picking up more advisory work.

The IAB survey included the top 50 firms.

 

 

 

 

Posted on February 4, 2014 at 10:00 AM