1. What is Big4?
What is Big4? This is the way to call it when talking about the top 4 businesses in a certain segment. But when talking about Big4, people often talk about the four largest global auditing firms, including:
Deloitte Touche Tohmatsu Limited Deloitte was born in the UK in 1845, is a professional service system in many countries. This is considered one of the businesses with the most sales and experts in the world. With about 263,900 experts in the fields of auditing, law and tax, this business specializes in providing consulting, auditing, hiring or financial consulting services to companies. In 2017, Deloitte made a strong impression globally with sales of up to 38.8 billion USD.
PricewaterhouseCooper (PwC): This business was born through the cooperation between Coopers & Lybrand and Price Waterhouse in 1988. Besides Deloitte, EY and KPMG, PwC is one of the top 4 companies in the field of auditing. PwC has received Vault Accounting 50 as the most prestigious global auditing firm for 7 consecutive years and the top place to work in North America for 3 consecutive years.
Ernst & Young (E&Y): in 1989, EY was born from the association between Ernst & Whinney and Arthur Young & Co. The name of this company is also the result of the association between two businesses, AC Ernst and Arthur Young. Today, Emst & Young or EY for short. Is a multinational enterprise, headquartered in London, England. EY specializes in providing audit, financial advisory, risk management services for information technology as well as tax. Occupying an important position in the global Big4 when the total assets of this company are quite large, up to 28.7 billion USD according to 2015 calculation.
Klynveld Peat Goerdeler (KPMG) is the last enterprise in the top of Big4. This is considered one of the highly specialized service providers globally, headquartered in Amstelveen, Netherlands. KPMG has approximately 189,000 employees working in about 155 countries globally. In its name it is:
“K” is Piet Klynveld, founder of the brand Klynveld Kreyenhop & Co. in Amsterdam in 1917.
“P” is William Barclay Peat founder William Barclay Peat & Co. in London in 1870.
“M” is James Marwick giving birth to Marwick, Mitchell & Co. with Roger Mitchell in New York in 1897.
“G” is Dr. Reinhard Goerdeler, for many years as president of KPMG, the key person in bringing together KPMG today.
2. History of the Big 4
Around before 1989, the audit market was also known as “The Big eight”, but after this time, 4 of them in turn conducted mergers and acquisitions (in detail, Ernst & Whinney associates). with Arthur Young to become Ernst & Young, Haskins & Sells joined forces with Touche Ross to form Deloitte & Touche).
Around 1988, the remaining 6 audit brands changed when Coopers & Lybrand merged with Price Waterhouse and formed PricewaterhouseCoopers (PwC) as it is today.
However, after 2002, due to an accounting scandal with customer Enron, it is now bankrupt. The Arthur Andersen brand ceased to operate. Since then, Big4 was born and has been maintained to the present.
In Vietnam, there is also a Big4 group, but this group does not operate in the audit field, but here are 4 banks in the state block, including:
Bank for Investment and Development of Vietnam (BIDV);
Bank for Agriculture and Rural Development of Vietnam (Agribank);
Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank);
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank).
4 This bank is considered as Big4 due to its superiority compared to nearly 30 private joint stock banks in most important criteria such as total assets, system, profit, capital… Most of these banks have been around for more than 30 years.