« Guest Op-Ed: Should FSOC Designate the Big Four As “Systemically Important”? How Not – And Yet Then What? | Main | Rock Ridge Re-Visited: History Repeats -- This Time As Tragedy »

January 26, 2017



GT, RSM, BDO and PKI can step in.

Jim Peterson

Thanks Mike. Unfortunately -- can't happen. It's a matter of scale and risk tolerance. For 2016, KPMG -- by a good bit the smallest of the Big Four -- had global revenue of $ 25.4 billion. BDO - $ 7.6, RSM - $ 4.6, Grants - $ 4.6, PKI about $ 1. If magically (and impossibly) those four combined, they would still be dramatically smaller than the smallest. Neither alone nor together could any of them take on the audit of the large global public companies, if offered on a silver platter -- as their risk managers would confirm (if only off the record).

David Damant

The fact that there are four big accounting firms and not six is entirely the fault of the regulators. When Arthur Anderson fouled up with Enron there was no need to bust the whole world wide firm. And the merger of Price Waterhouse and Coopers should never have been allowed. David Damant

Jim Peterson

Thanks David. There are complexities the history of both Andersen's collapse and the merger that created PwC, that would expand your comment -- the challenge now being the fact that the surviving Big Four are down to "critical mass."

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)


Never miss a post
Please enter all required fields
Correct invalid entries

Follow Me

  • © 2007-2024 James R Peterson Special thanks: Francine McKenna. Always with love: Kat and Julie. In memory: Bob White, Stuart Kadison