Some experts anticipate certain changes in the global market. Thus, the Big Four will expand and become, for example, the Big Seven. There are opposing views: they say that the world’s largest auditing firms can merge into two and distribute the spheres of influence among themselves. How real it is – it’s hard to say so far. However, let’s recall the history of the emergence of the Big Four.
In 1910, there were eight large audit firms in the world - Arthur Andersen, Coopers and Lybrand, Ernst & Whinney, Deloitte Haskins & Sells, Peat Marwick Mitchell, Price Waterhouse, Touche Ross, Arthur Young. In addition to them, there were small audit firms operating around the world. As large UK and US companies began active international engagement, they needed audit firms that could serve their businesses around the world. Consequently, firms had to unite to respond to new business challenges.
In 1989-1990, the number of these companies was reduced to six (Ernst & Whinney merged with Arthur Young and formed Ernst & Young, and Deloitte Haskins & Sells joined Touche Ross, resulting in Deloitte & Touche). Then Price Waterhouse merged with Coopers and Lybrand, and the Big Five already worked in the market. Finally the Big Four was formed in 2002 after the scandal with Enron, which caused the disappearance of Arthur Andersen from the market. What changes to expect next is an open question.