There are a lot of auditing firms which operate globally both in large or small scale version. However, there are the big four auditing firms which have gained positive rapport from a lot of people firms and companies globally.
The Big four comprises a different set of companies
Moreover, according to Greenwood eatl (1990) who provided the definition of an auditing firm as a professional partnership which operates in a decentralized organization and a relationship between its national head office and its local offices? This definition may have spear rocketed the amalgamation of some several companies that lead to the formation of the big four auditing companies which operate on a global platform.
They offer a wide array of services
Besides offering a complexity of auditing services, the big four auditing companies also specialize in the offering of other services such as tax assurance, consulting services, actuarial services, and other legal services.
Take an example of one the largest international service of the network in the name of KPMG which is well known to handle a large array of audits for both public and private limited companies. KPMG has created an oligopoly in the auditing services that shuns away other small auditing firms from getting high-quality auditing tenders from this public and private limited companies. KPMG coordinating agency is known to be in Switzerland. Other three companies that make up the big four are Delloite, Touche, and Tomatsu they have a co-coordinating agency in the United Kingdom.
They have proven audit record
A recent research affirmed that the big four companies are well known to audit more than 96 % of company audits during different times of the financial year. Most at times the company are hired to perform both an internal or external audit and the results of the audit have provided vital information to different companies and organization globally.
They charge affordable prices
The cost of their auditing services is affordable and it matches the audit input which the companies put in place to ensure that excellent auditing services are accorded to you. The big four auditing companies are also guided by auditing code of conduct and follow international auditing laws while conducting their audit. While determining the cost of your audit, the companies usually consider the nature of the entity, the entity transaction industry, the condition of both the financial records and other financial statements.
This ensures that a suitable audit fee is reached upon that is pocket-friendly. The commercial decision that leads to the valuation of the audit fees is usually handled by both the company auditors and directors. The company directors are the one that is responsible with the placing of the final audit fee. They also ensure that the audit fee placed doesn’t in any case whatsoever barricade the offering of excellent audits to clients.
They present their auditing records for Public scrutiny
The big four companies are also well known to avail their records for public scrutiny. This ensures that the clients are able to investigate the deals of the company and ascertain if they participate in any illegal auditing activities.
In conclusion, most companies prefer to hire the big four to perform their auditing services due to the professional nature in which these companies perform their audit.