Who Were the Big 6 Audit Firms? History and Evolution Explained

Learn about the Big 6 audit firms, their history, and how mergers led to today's Big Four accounting firms: Deloitte, PwC, EY, and KPMG.

490 views

The Big 6 audit firms refer to a historical group of major accounting firms which, due to mergers and one major member's collapse (Arthur Andersen), now stand as the Big Four. These are Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG. The term 'Big 6' is outdated and refers to a time before the late 1990s and early 2000s when Arthur Andersen was still operational, and before several mergers reduced their number to four.

FAQs & Answers

  1. What happened to the Big 6 audit firms? The Big 6 audit firms existed before the late 1990s when mergers and Arthur Andersen’s collapse reduced their number to the Big Four: Deloitte, PwC, EY, and KPMG.
  2. Which firms make up the Big Four audit firms? The Big Four audit firms are Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG.
  3. Why is Arthur Andersen no longer part of the major audit firms? Arthur Andersen collapsed primarily due to its involvement in the Enron scandal, leading to the firm's dissolution in the early 2000s.

Watch More

For a deeper understanding of the audit industry today, explore content about the Big Four accounting firms and their role in global finance. Also, consider learning about the impact of corporate mergers on the accounting sector and regulatory changes post-Arthur Andersen.

  1. Why Are Deloitte, PwC, EY, and KPMG Called the Big 4? Discover why Deloitte, PwC, EY, and KPMG are collectively known as the Big 4 accounting firms with global influence and comprehensive services.
  2. Who Are the Big 4 Accounting Firms? A Comprehensive Overview Discover who the Big 4 accounting firms are and what services Deloitte, PwC, EY, and KPMG provide globally.
  3. What Is the Difference Between the Big 4 and Big 5 Accounting Firms? Learn the difference between the Big 4 and Big 5 accounting firms, including key players like Deloitte, PwC, EY, and KPMG.
  4. What Are the Big 4 M&A Firms? Explained by Deloitte, PwC, EY & KPMG Discover the Big 4 M&A firms: Deloitte, PwC, EY, and KPMG, and their key roles in global mergers and acquisitions.
  5. Which Big 4 Accounting Firm Is the Smallest by Revenue and Workforce? Discover which Big 4 accounting firm is the smallest in terms of global revenue and workforce, with insights on KPMG's industry position.
  6. Which Big 4 Firm Has the Best Culture? Comparing Deloitte, PwC, KPMG, and EY Discover which Big 4 accounting firm—Deloitte, PwC, KPMG, or EY—offers the best company culture based on diversity, work-life balance, and professional growth.
  7. Who Are the Top 5 Investment Banks in 2024? Leading Firms Explained Discover the top 5 investment banks including JPMorgan Chase, Goldman Sachs, and more, and learn about their key financial services.
  8. What Are the Big Merchant Banks and Their Key Services? Discover the major merchant banks like Goldman Sachs and J.P. Morgan and their roles in underwriting, financial advising, and mergers.