An investigation into the dominance of Deloitte, EY, KPMG, and PwC — tracing how they came to control global auditing and consulting, and the systemic risks their concentration of power poses to markets, regulation, and the public interest.
The Big Four — Deloitte, EY, KPMG, and PwC — audit the vast majority of the world's largest companies, advise governments on tax and policy, and sit at the centre of global finance. Yet they operate with remarkably little scrutiny. How did four firms come to hold such extraordinary power? And what happens when they fail?
Drawing on extensive research and interviews, Ian Gow and Stuart Kells trace the history of these firms from their Victorian-era origins through a century of mergers, scandals, and political influence. The book examines the conflicts of interest baked into the audit model, the firms' role in major corporate collapses, and the regulatory capture that has shielded them from accountability.
The Big Four is an essential read for anyone who wants to understand how modern capitalism really works — and who is watching over it.
"An invaluable contribution … acknowledges the firms' immense power and the seriousness of their neglect of traditional responsibilities. The Big Four will appeal to all those interested in the future of the profession — and of capitalism itself."
"Who would have ever thought that one would find a deep understanding of the issues facing today's Big Four in the rise and fall of the Medici bank? Gow and Kells provide a riveting analysis of the historical antecedents to today's Big Four structures and strategies and leave us totally unsettled in considering the industry's future. A unique approach of historical comparisons results in a must-read volume of an essential industry that is poorly understood. I could not put it down!"
"Major international accounting firms play a fundamental role in the governance of the world's largest public companies. The quality of financial statements is crucial for evaluating executives and valuing firms. The Big Four delves into the origin of these firms and the role they play in businesses around the globe. Like many organizations, the future for accounting firms is uncertain. How will this profession adapt to its new environment? The Big Four tells the reader what to expect. This is a must read for executives and directors alike."
"A fascinating book … I highly recommend it."
"Great fun. I enjoyed it."