The world has changed. Do you still need the Big Four brand?

Friday, September 18th, 2009

I began my career at a Big Eight accounting firm (yes, I know I’m dating myself), and so did many of my partners.  We each decided, a number of years ago, that we didn’t need the Big Firm name anymore.  Since then, many Big Four clients have decided they no longer need the Big Brand either.

Do you still need the Big Four brand on your audit?

Some things have changed. 

We used to think that companies with global reach needed  a Big Four firm.  That’s  not so true anymore.  Unless you have extensive, ongoing operations all over the globe, you can be well-served by a strong regional firm that’s close to your headquarters.  Many firms belong to international networks, and have affiliates worldwide.

We used to think that complex organizations or those subject to substantial regulation needed a Big Four firm.  But top-tier regional firms are just as likely to stay on top of the newest standards and the more obscure regulations.  There’s more data at our fingertips than ever before, and firms that commit to their people and invest in training and development are just as capable as the Big firms today. 

We used to think that companies with big institutional investors, or in the process of raising capital needed the prestige of the Big Four brand.  Today, 100% clean PCAOB inspections and decades of clean peer reviews may be just as compelling.

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