The Big Four Auditors Essay

The Big Four Auditors Essay

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KPMG is one of the largest companies in the world. It is also one of the “Big Four Auditors.” The Big Four Auditors are the largest four international companies that offer services in auditing, tax, consultation and anything to do with legal services. KPMG was founded in 1987 and its headquarters is in Amstelveen, Netherlands. They focus on three lines of services: Auditing, Tax, and Consultation. Collectively, they employ more than 155,000 people across the world. They branch out in about 155 countries worldwide.
As stated before, KPMG is one of the top companies in the world, or one of the “four brothers.” The Four Brothers include KPMG, Ernst and Young, Deloitte, and Price Waterhouse Cooper. KPMG is actually the smallest of the four. Originally, they were eight brothers, which then decreased due to some companies merging. Also, one of the companies of the eight was caught in a scandal that caused them to become disbanded. Today they are only four and are at the top of the competition.
To understand what KPMG does, the term “accounting services” needs to be understood. Accounting services mainly break up into three sectors: Auditing, Taxation, and Consulting. KPMG basically works with all these departments. An audit is mainly a checking of financial records. It is to show proof or documentation of business activities. The “auditor” then checks these documents and recorded events to make judgments and give opinions on how to improve effectiveness on control and risk management. All public companies, by law, have to undergo audits. It is crucial to see whether the capital being invested in firms is being done legally. In their auditing service, they offer reports professionally and with excellent quality. Their specialists are bas...

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... of different sized businesses. KPMG in the US focuses on big corporations rather then smaller-medium ones. Because there is a market for large corporations, they are always in need of one of the big four brothers. Now the many different service firms available are servicing the smaller firms. KPMG focuses on the larger corporations unlike their branch in Dubai. Mainly because in the Middle East there isn’t as big as a market as oppose to the US.
In conclusion, the differences in practices are major due to different markets and culture. Even though they might be the smallest of the four, they are the largest in the Middle East. Dubai and the rest of the Gulf are booming and the markets are getting bigger everyday. I personally think in the future they will attract the big corporations and will already have many clients from the SMB’s, which will keep them on top.

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