PricewaterhouseCoopers PwC Essay example

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PricewaterhouseCoopers (PwC)is the world’s largest accounting firm and ranks as one of the giants in the global professional services arena. PwC employs over 146,000 people with 766 offices in 150 countries. The Firm is led by Samuel A. DiPiazza, CEO, and is headquartered in New York City on Madison Avenue. Its clients include 84 percent of the Fortune Global 500 companies. Price Waterhouse and Coopers & Lybrand merged in 1998, which made the combined firm the top player in public accounting. In the 2007 fiscal year, PwC had gross revenue of over $25 billion. Structured as a limited liability partnership (LLP), the private company would rank in the low 300s on the Fortune 500 companies.
History of PricewaterhouseCoopers
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Collectively, they are known as the “Big Four.” When combined, their 2007 revenues exceeded $89 billion. This group was once part of the “Big Eight” before a series of mergers and acquisitions. Arthur Anderson was among the “Big Eight” and was considered an innovator among the firms because of its specialized consulting practice. In the wake of the 2001 Enron scandal, Arthur Anderson was liquidated after most of the firm’s management was convicted of obstruction of justice. Other firms that were formerly members of the “Big Eight” merged. Ernst & Whinney combined with Arthur Young to create Ernst & Young. Deloitte, Haskins, & Sells joined with Touche Ross to form Deloitte & Touche (Deloitte). In addition, the Peat Marwick firm had previously consolidated with KMG Group to create KPMG. These mergers are what led to the “Big Four.” Today, the “Big Four” perform the majority of the audits for publicly traded companies.
Effects of a Changing Industry
Ranked by 2007 revenue, PwC was number one with $25.2 billion. The others trailed PwC with Deliotte at $23.1 billion, Ernst & Young at $21.1 billion, and KPMG at $19.8 billion, respectively. In terms of service lines, advisory and consulting services for all four firms combined grew 21.7 percent, from $18 billion to $21.9 billion. Tax services expanded by 18.4 percent, from $17.6 billion to $20.8 billion. Audit and assurance services, grew at the slowest pace

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