Count Down: The Past, Present and Uncertain Future of the Big Four Accounting Firms

by Jim Peterson

The post-Enron disintegration of Arthur Andersen in 2002 reduced the number of international accounting firms that audit nearly all of the world's largest public companies to the surviving Big Four -- Deloitte, EY, KPMG and PwC. Despite market dominance, double-digit annual growth and annual global revenue above $120 billion in 2014 - the viability of the Big Four and their business model faces serious Widespread dissatisfaction with the standard form and language of their core product -- the traditional "pass-fail" auditor's report. - The persistent "expectations gap" between their perceived performance quality and the stated desires of information users. - And especially, the questionable ability of the Big Four and their partners to survive a "black swan" financial shock - a litigation judgment or law enforcement sanction on the scale that destroyed Arthur Andersen. Count Down looks at the complex challenges facing the Big Four, questions the feasibility and achievability of the various proffered "solutions", and proposes an evolved model for Big Audit that would be both sustainable for the large firms and fit to serve the capital markets of the 21st century.

Genres: Nonfiction, Business

256 pages, Hardcover

Published December 2, 2015

Reviews

[Anandh Sundar · Rating 5 out of 5]

Jim Peterson gives a data backed explanation of why the Big4 model is risky and why eventually the audit services market may transform. a balanced counter-view to the usual story of 'breaking up the big firms', also giving the view of end-users

[Barry · Rating 5 out of 5]

This should be must reading for People in the Accounting Profession and a text for those who so aspire. In this well written exploration of the Profession, Peterson, walks us thru origins , current issues and where the Profession- and those who rely upon it might be going( spoiler alert- its not pretty!). He names names and pulls no punches . His analysis is deep and his insights are penetrating

[W. Holmes · Rating 5 out of 5]

If you’re interested

This book isn’t for everyone, but is a great read for anyone interested in the Big 4 auditing firms. Straightforward and reasonable.