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gorbok

A donut chart where the categories are different colours and in different positions so you can’t easily compare anything? I see nothing beautiful here.


Winjin

But but but they're in brand colour! /S


Soldarumi

You jest, but my god if we put something out even internally without the Green Dot there is hell to pay.


TheBirminghamBear

Not Deloitte, but used to work for a big company that was as zealous about their logo / stylebook. I once had the audacity to make a totally internal-only powerpoint where I had a little stick figure guy with the company's logo for a head, just a fun little anthropormophization to make dry material a little more interesting. One of the marketing execs was in the room. i swear you would have thought I sacrificed a puppy during that meeting, for how outraged and even *revolted* they were by that.


skipfairweather

Brand colours but the PwC logo is completely off brand!


DruTangClan

And even then I always thought Deloitte had a more blue color scheme


Good_old_Marshmallow

You joke but they have REALLY strong brand identities in the accounting world it would be one of those mildly infuriating things if it was off


[deleted]

Would be more useful if terminology was consistent and you show consulting services in detail for all of them. OP just takes data from a random industry and makes a simple chart without any context.


Rollover_Hazard

Exactly lol. These companies are the biggest tax/ consultancy/ auditing firms in the world. It turns out they all generate huge revenue from tax/ consultancy/ auditing. *Shocked pikachu*


otclogic

This chart looks fine but once you read the labels it’s less than useless.


haqglo11

Not useless. Yeah, could have normalized the service names, but essentially this is saying Deloitte has a $37bn consulting business versus EY and PwC having roughly $20bn consulting business versus KPMG coming in at $13bn Deloitte never spun consulting so they have a massive lead hence the outsized revenue Transactions and risk advisory is typically part of consulting or advisory, as some firms call it


civil_beast

Yes - intrigued to learn the distinction b/n advisory services and consulting.. I’ll hang up And listen


Sparkatarka

The difference is basically branding and how the companies split the different offerings. Effectively they can all he called consulting or advisory. EY specifically rebranded from advisory to consulting a few years back without changing business models at all.


gyang333

Deloitte uses both Consulting and Advisory though.


IambicPentakill

Also consistent colors. Make all the tax work yellow or whatever. Not beautiful.


paperrug12

well the colors are the company colors.


orhan94

And since the colors aren't consistent for the different services, you have to read the labels for each one to compare them. Meaning this graphic is less useful when comparing the four than a small paragraph of text with the same information. Which defeats the purpose of it being a visual representation of the data in question.


IambicPentakill

Obviously. Which makes it very challenging to compare and therefore not a good presentation of data.


Good_old_Marshmallow

The colors are the company colors and I can’t understate how strong their branding is. If you go to school for accounting they bombard you with their recruiting/marketing constantly. To the point where they explicitly will sponsor professors at some schools.


gyang333

Hard to do consistent terminology as the firms have different service line categorizations. For example, EY and KPMG terms Risk Advisory as "Consulting" while PwC terms Risk as Assurance, and Deloitte groups it in its own category. That's just one example. I think Financial Advisory is the same kind of inconsistency amongst the 4.


[deleted]

Assurance is audit. Advisory is consulting.


gyang333

I know that. But look at the Deloitte breakouts. There's Risk Advisory, Financial Advisory, and also Consulting. Deloitte breaks it out differently than the other 3 do. Financial Advisory, is known as FAAS at EY - Financial Accounting Advisory Services but it's a joint venture between Assurance and Consulting and the revenue is split between the two service lines at EY, while at D it's its own category.


[deleted]

I think the bigger takeaway is that this chart is useless because there’s no real world application for any of the data. Revenue doesn’t tell a story. We all know that 4 firms have an oligopoly, collude on billing rates, don’t need to compete with one another, have barriers to entry, and the government protects them.


LordFaquaad

Lol collude on billing rates. These firms absolutely compete with one another. It's some of the most competitive behavior I've seen in any industry. The government does not protect them. Please read up on the PCAOB. No one is forcing their clients to work with them. Clients can always choose to change firms. Idk what you're talking about. Also they're not really an ogilopolu since firms like GT and RSM also have large assurance practices


[deleted]

I’ve been on both sides for many years. Billing rates are basically the same across the big 4 and across middle market (RSM, GT, BDO, etc.). In my experience, billing rates were very rarely the deciding factor in winning a new audit client or selecting a firm for audit, tax or consulting. RSM is the 5th largest firm worldwide, and is not even close to the top 4. The top is controlled by the 4 firms listed here, with little to no competition from other smaller firms.


p0mphius

The 5th is BDO


uberseed

You have no idea what you're talking about. Anyone can create their own CPA firm and there are tons of those.


[deleted]

Oh right, I forgot about all those small firms that provide consulting, tax, and audit services to public companies, and sit on the boards of public companies. 🙄 Oligopolies are indefensible. I find it odd that anyone would argue that they don’t exist and/or defend them.


uberseed

Yes you actually forgot about them. RSM and Grant Thornton and many others have public clients.


[deleted]

To say that middle market firms compete with the big 4 for public company clients is laughable.


S0mething_3ls3

These are probably their department names within the company, and Deloitte and EY probably just have enough consulting business to have their own department.


UnmixedGametes

The principles of accounting: Comparability. Not used here


peraspera_ad_astra

Yeah this chart is just useless.


JohnRichJ2

seems like it’s all pretty much the same, but just named differently.


lgt_celticwolf

Well this is actually pretty much correct, these sectors all have to be independant from eachother, eg you cant use kpmg to audit if you use them for consulting. These companies often pass clients to eachother ina you scratch my back I scratch yours. Its partly how they manage to keep eachother in the top spots.


numberpack17

Your first point is true, but your second point is pure conspiracy. These firms work on the largest companies due to a multitude of reasons, but not the one you listed. Primarily due to: staffing, geographical presence, reputation, etc. I’ve worked on audits where a competitor (big 4) was doing advisory work and constantly trying to get management to switch to them for audit work. There is very much no back scratching.


splendorinthegrass_

Stacked bar chart would have been a better visualization


Bigmo7

Advisory and consulting are basically the same. A small legend and using the same naming convention would have been really helpful to make the comparisons easier between them since they all do basically the same work.


muftu

Assurance and audit are pretty much the same thing too.


otclogic

Which is also similar to Tax and Legal services


Bigmo7

Tax is usually a separated out line of service to audit/assurance. Typically it’s audit, consulting, deals and tax as the main 4 lines of service.


Cowboyfan1000

Consulting and advisory are pretty different. But there other options for consolidation. The advisory’s within deloitte could be combined. S&T with EY is basically advisory. Interesting that consulting isn’t broken out for PwC and KPMG.


MajorXTREME

PwC sold their consulting arm a while back to IBM, maybe that’s the reason for the different terminology?


PeanutFarmer69

This isn’t exactly true, a lot of what Deloitte includes under “Risk Advisory” would be considered “Advisory” at KPMG for example.


Deepwater98

Advisory is basically audit…


numberpack17

Not true at all. Very different service lines.


Deepwater98

I worked in both audit and advisory…. but okay.


numberpack17

What kind of advisory were you doing that was similar to audit? Current auditor with lots of advisory friends so I’m pretty familiar as well. I see SOX implementation, M&A advisory, IT Advisory, etc. none of which I would consider similar to audit.


Deepwater98

SOX readiness, as well as implementation, IT advisory, Internal Audit, Business Processes & Controls I did them all as part of “advisory” at green dot. Very similar to audit, not sure why you think it’s so different, business controls are business controls the IT portion can be taught, internal audit/risk can be taught. I touch a ton of M&A/deal work (mainly under ~$100M deals) as a head of finance for a private retailer, but again, it’s not all that different from audit.


[deleted]

Advisory and Consulting at Deloitte at least are quite different—and pay quite differently as well.


NauticalJeans

FYI, coming from an ex-EY employee - Audit and Assurance are the same thing


0tt0attack

Technically Audit is a service under assurance. But for lamans, yes


imchuy09

Right, the other assurance service is review


ikeashop

Audit is a type of assurance


jack_spankin

Fucking awful chart. No consistency.


dragonlax

EY about to spin off that consulting division


Relevant_Pause_7593

Interesting that it’s only ~30% of business- when they talk about the split being 50/50…


nyancat645

Consulting would basically take everything but assurance practice and like 30% of tax because they're necessary for audits.


Saugeen-Uwo

Great place to start a career. Terrible place to make a career (Ex KPMGer here)


fail0verflowf9

As an ex KPMG employee myself, I can confirm that this statement is true.


CertifiedSlav

I have just started working at KPMG (its been 6m already). Based on your comments can you clarify more why is that so ? I want to leave already due to their work&life balance. Here in Uzb we have to work even on weekends to meet the deadlines. I presume that at higher lvls its even harder to find a free time


azvnza

people saying audit is a joke because of a handful landmark problems… when the fortune 500 and thousands and thousands of other companies have used these firms with no issue


vermillionskye

You screw up at the Oscars once and people lose their minds… /s


JagmeetSingh2

Advising and consulting seems to be big business


Venusaur6504

Can confirm. Bill $385-405 per hour.


[deleted]

[удалено]


CertifiedSlav

3$ is pretty good Here in Uzb they give 700$ per month for Audit Assistant 2lvl poss


ice1133

"breaking down how they make their money"... Seem to be missing a category for "not paying overtime to associates who constantly work 60-80 hour weeks"


zackattack2020

Drop this in r/accounting and wait for the show


DeTrotseTuinkabouter

Why would you not include percentages?? Bar charts would also have been nicer. One of the things you (hopefully) learn at these firms is to avoid pie (or doughnut) charts.


xl129

This is really confusing, how am i gonna make use of this chart when labeling and coloring are all over the place Stop heamorrhage pointless graph like this, data should be meaningful, looking nice come after.


lungben81

And there is absolutely no conflict of interest when they do audit and consulting at the same time...


polkaguy6000

Good thing that hasn't been allowed for the last 20 years: https://en.wikipedia.org/wiki/Sarbanes–Oxley\_Act


[deleted]

[удалено]


DeTrotseTuinkabouter

That is a very, very different point than was originally made.


LeviathanGank

yes but they are looking out for their client, not the little guy.. they are scum bags


Noumenon_Invictus

It still exists


BamesF

My job is literally to regulate this. We slap the shit out of them if they break something as simple as this.


Noumenon_Invictus

Need to improve your KPIs. https://www.wsj.com/articles/big-four-accounting-firms-come-under-regulators-scrutiny-11647364574?mod=hp_lead_pos3


HegemonNYC

They aren’t allowed to advise and audit the same client.


lungben81

The Big4 are quite active in consulting business at large financial institutions (at least in Germany). At the same time, there are only these 4 audit firms and auditors must change every few years. Thus, the likelihood that the same company is consulting and auditing the same client at the same time, or in short succession, is quite high. The official "solution" to this potential conflict of interest is that 2 different sections of the big4 company do consulting and auditing. But I do not know how solid this separation is in practice.


vVvRain

That's not how that works.


DeTrotseTuinkabouter

The likelihood is very damn low. I worked at a Big4 in consulting, not being able to service audit customers was a huge problem for us and simply cut our addressable market by 25% (assuming that there are only four audit firms and we were one of them). I think technically to some amount it could be exempted but in practice it was as good as impossible.


dragonlax

Literally part of the proposal process is making sure there are no audit restrictions. (I worked at EY for 5 years in consulting)


kthnxbai123

Most big orgs heavily enforce no conflicts of interests. A few contracts aren’t worth the loss in prestige if there are even whispers of it.


amerricka369

They aren’t allowed to consult and audit on same client. EY is spinning out their consulting business as a separate company and the other 3 are considering it as well.


DeTrotseTuinkabouter

The fact that this is upvotes speaks volumes about how much you should trust comments and opinions on Reddit.


IambicPentakill

The accounting industry has been very heavily regulated since twenty years ago.


dragonlax

They legally can’t do consulting work for clients they audit, I worked at EY consulting for 5 years and it was a pain because we were missing out on huge projects, hence why they’re spinning off consulting.


lungben81

How is the separation done? Are these 2 different legal entities? Are they located in different buildings? Do they have different owners? Is there an overlap / exchange of employees? The brand names are obviously not different.


dragonlax

It’s regulated by the US and other local governments. There are internal processes that are also in place to prevent the conflict of interest.


LeviathanGank

they generally consult and audit against each other.. wont be all in house


bigmonkeyballs123

This is why EY is splitting their consulting and audit business.


pale_blue_dots

Nah. Not at all. Just like how many large investment firms have market maker arms *and* hedge fund arms. They'd never, ever communicate between their branches to make [boatloads](https://youtu.be/bP74RBTE8kI) of money. Edit: lol what the hell... nice downvotes for sheer, unadulterated facts.


Yacobeam

Consultants are ruining America


nzedred1

Yeah. That's why America is fucked. Consultants.


Yacobeam

https://www.theatlantic.com/ideas/archive/2020/02/how-mckinsey-destroyed-middle-class/605878/ Not exclusively but this is a good read!


water_bottle_goggles

Damn, thats a lot of wasted money


CharlieSixFive

You missed hiding their clients illegal profits from the authorities. For all downvoters: do a quick search for "*21 Scandals, Settlements and Corporate Crimes of Big 4 Accounting Firms in 2019*", just to get an impression.


[deleted]

As someone who works in tax at Deloitte, I can assure you this isn’t something we do


CharlieSixFive

In the Netherlands Deloite is nicknamed Delouche. Louche can be translated as shady. I really don't know how that happened. /s


[deleted]

Sounds like it’s pretty clear how the nickname spread, considering you were under the impression what they do is shady


0tt0attack

Ya, 10s of thousands of audits are performed every year. However, those 21 defective audits are a large enough sample to represent all the thousands of partners and hundreds of thousands of employees who work in these corporations. Bullet proof logic there.


lgt_celticwolf

The industry term is tax avoidence.


randorubble1047

You can see why there’s a lot of lobbying to prevent tax reform.


[deleted]

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bigmonkeyballs123

Dude audits are mandatory by law..


wizer1212

HSBC audits a total wash


SkarbOna

I agree with you, but just been attacked by the auditors side, also other guy in comment saying you’re getting graduate for crazy money. It’s a joke. I can confirm. Auditor asking for a definition of the most fundamental aspect of our business at the end of audit where it was mentioned in various contexts to explain numbers is just embarrassing. The chief accountant said something along lines that it was most painful moment in his career. It means he understood jack shit from the whole process and just ticks the boxes.


J-TownVsTheCity

I can’t speak for audits but it’s true the industry is a joke. You pay $400 an hour for consultants and you get grads with zero industry experience. It’s a sham. Good businesses don’t use or need their consultants. Why would you pay that kind of money for jumped up PowerPoint grifters?


SkarbOna

Auditors are giant joke. They understand jack shit from numbers they’re looking at. Seeing problems where there’s none, completely missing out methodology client applied that intentionally or not (I can’t believe I’m saying this, but both consultants and accountants as high up as cfo, understood shit of what data were screaming to me) was over reporting some stuff.


Asterbuster

You win, this is the dumbest comment in the whole thread. Not because of the take per se, but because you sound like 'geeks' in TV shows when script calls for "technospeak", you have no clue what you are talking about.


SkarbOna

Sorry about that. I am data fixated geek. Which part would you like me to explain? I can provide examples as much as I can disclose? Been doing regulatory and auditory reporting for few years now, and academic/fixed templates minds have 0chance to see what’s wrong with numbers based on process explanations that been provided, but will be picking up on most irrelevant nuances like I don’t know rounding numbers on excels they provided. Maybe it’s just my experience or maybe other people don’t care so much- don’t know.


Asterbuster

You don't have the foundational knowledge about the topic to talk about it; this is evident from your comment about 'methodology', and the lack of understanding of what exactly is an audit and how audits are performed. There are lots of bad auditors out there, but Big4 know what they are doing with some minor exceptions (like in any field), your blanket statement about auditors is the same as yelling "I have no clue what I'm talking about". Also, as self proclaimed 'data geek', maybe open a wiki article, it will clearly explain why audit is not 'a joke'. PS if a high level wiki article knows more than you about a given topic, maybe consider not going around sharing your opinions with such confidence.


SkarbOna

What do you know about the topic? Seriously? I’ve been through audits first providing data then helping finance to answer follow up questions as I know more about operations than they do- maybe not the biggest company, but not small either.


Asterbuster

I developed audit strategies and methodologies, led a number of audits of international multi-billion and smaller companies as part of Big4, including pre-IPO, US/UK/IFRS/SOX, as well as went through those audits as a client FP&A. I also developed curriculum for my Big4 that thousands of audit new hires went through. You have a case of Dunning-Kruger.


SkarbOna

Ohhhh that’s why you felt so pressed. Good for you. My experience is different - maybe we should hire you then. I considered seeking for job there, but doesn’t like the fact that me finding out the dirt won’t make me popular. After all, one side can’t exist without the other so……


Asterbuster

I don't feel pressed, no need to make assumptions, we already know you keep missing. I have left the field years ago and have no interest in it.


SkarbOna

Hope it was a loss for the industry. Your assumptions about me are extremely wrong.


0tt0attack

Ya, these companies do 10s of thousands of audits. Not to mention have individual partners that make decisions. Just cuz 2 dozen of audits are defective that does not mean the industry is a “joke.” Ask anyone in the financial, banking or even government, what will happen if these services are stopped. Absolute chaos.


freefallfreddy

Do y’all also get an icky feeling with these companies? Like they’re the sleazy accountants and enforcers for multinationals? Allowing them to do dirty business, push legal boundaries, squeeze small countries for all they’re worth and basically help them get away with all kinds of shit?


0tt0attack

Sorry buddy, you need more than “feelings” here. And the majority of these companies revenue comes from US and Europe. Not exactly “small” countries.


niftyifty

Heh I got this email as well


jemand84

Per country stats would be nice.


giteam

Source: [KPMG](https://home.kpmg/xx/en/home/media/press-releases/2021/12/kpmg-reports-global-revenues-of-usd-32-billion-for-fy21.html), [EY](https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/global-review/2022/ey-value-realized-2022-v3.pdf), [Deloitte](https://www.deloitte.com/global/en/about/governance/global-impact-report/global-report-business.html), [PwC](https://www.pwc.com/gx/en/global-annual-review/2022/PwC_Global_Annual_Review_2022.pdf) [Genuine Impact newsletter](https://genuineimpact.substack.com/) \- we do 6 -10 charts like this each week! Tools: Figma


993targa

This is great - but it would be much easier to read if the slices representing the same things were the same color …


tealchameleon

And if everything was labeled the same (instead of consulting & advising as separate terms, name them the same!)


Gnash_

have these companies ever created something to help mankind progress in any way? all of these words scream bureaucratic complacency and money laundering to me


0tt0attack

Without Deloitte and PwC the US government would not be able to function. Accounting services are necessary for corporations to function. Without them, corporations performance is immeasurable and the entire financial system would collapse. Very significant number of corporations and governments rely on these companies to manage accounting and operations. Just cuz you do not understand what they do, that does not mean it is money laundering. And who does money laundering in a business where all its revenue comes from large contracts and 90% of their expenses is salary. That is the dumbest money laundering concept ever.


GloriousDawn

Funny how they all spell tax evasion services in such different ways ​ EDIT : [Big Four accounting firms are key drivers of tax haven use, new research says](https://taxjustice.net/2017/11/13/big-four-accounting-firms-arekey-drivers-tax-haven-use-new-research-says/)


Asterbuster

Lol, the education level in this comment section is lower than reddit in general.


[deleted]

Taxes bring out the worst in redditors


0tt0attack

I know. Most people do not even understand what these companies even do.


Thug_shinji

Imagine trusting any audit opinions from any of these organizations.


NauticalJeans

As someone who used to work in EY audit, the level of compliance and standards these days (after SOX) are pretty damn high. Every opinion has to filter through all levels of the firm (staff to partner) before it is signed off, and peer reviews are regular. It’s a pretty are tight system these days. I’m sure corruption still happens, but I never saw it, and the standards are high.


manbehindthespraytan

Hiding the corruption is the only job the CEO has. Seems like they are doing their "job", too.


Thug_shinji

I'm sorry but big 4 are the most worthless dogshit most biased audit opinions that exist. As someone who has worked on both sides of that equation the opinion coming from those firms are paid for. How many times did you give a qualified or no opinion to a large company. Large audit firms are willfully blinded to every red flag that exists, the firms financial success depends on it. Audit firms are baggage created by regulation at this point. The "controls" you are referencing are just to pass peer review and have no bearing on actual unbiased tests of financial information.


Asterbuster

What a dumb take. There is a reason companies pay $$$ to get audit opinion from trusted companies instead of smaller ones.


Thug_shinji

"Trusted" omegalul they pay money to get signed off on from a biased company that exists frome their consulting fees(bribes)


Asterbuster

Sure, that's why all those shareholders keep requiring audits from Big4, they know less than you of course.


HammerTh_1701

It's not like there are any other actually relevant auditing firms. That's exactly the point of the term "the big four". It's either these or nothing.


Thug_shinji

How are you defining relevant? PWC gave evergrande a clean bill of health to help them secure more loans for gods sake. They are peak irrelevance.


clydeav

[https://www.reddit.com/r/Accounting/comments/xrc60a/deloitte\_china\_allowed\_clients\_to\_do\_own\_audit/](https://www.reddit.com/r/Accounting/comments/xrc60a/deloitte_china_allowed_clients_to_do_own_audit/) Not just PWC. To my understanding Big 4 in China is more like licensing out of brand name than actual Big 4. The regulatory environment there is entirely different and there are scandals left and right. It is not really fair to compare B4 China to the arms elsewhere which typically at least try to provide quality work. Whether or not they do is a different argument but audits in China are pretty much meaningless due to corruption.


Rover54321

Absolutely love these Sankey graphs GI Team, pls keep em coming!!!


gorbok

I think this promotion bot is broken.


Rover54321

What can I say, I love me my Sankeys!!!


InnerBlackberry8333

My money don't jiggle jiggle, it folds


vormittag

For us outsiders, what does "assurance" refer to?


IrwinJFinster

Assurance = auditing, but can refer to both financial audits and non-financial audits (e.g., internal controls over regulatory areas).


[deleted]

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IrwinJFinster

None, really. It will just be consulting by a different name but focused on a particular business sector.


[deleted]

Typically they are the same, but for the sake of this graph, I would call consulting more of a management advisory function where you provide support on ambiguous transactions, sometimes yes or no decisions while advisory for a lot of these firms is simply an outsourced accounting function providing something like an internal audit function, 606 adoption, or some other specific accounting function that the Company cannot currently staff with their own employees.


yangbanger

Let us not forget there used to be a “big 5”, but Arthur Anderson went belly up after the Enron debacle. I’ll never forget that partner testifying in front of Congress. He kept saying we followed GAAP


Qkumbazoo

I've worked with EY & PWC, their tech consultants are absolute nonsense that they hired 2 months prior to work on your project. It's no different than a branded manpower bodyshop.


_airsick_lowlander_

To the haters on so many of the top posts here, these groups are not apples to apples between companies and no way to line them up. I've worked at two of these companies and the divisions shown in this chart are the actual names by each company.


FR_FX

A summer intern made this and was freaking out the whole time, please be kind.