Table: What Consulting Do Auditors Do?
The Big Five now get 54% of revenues from tax work and consulting. The key segments:
Closely linked to auditing, all the big firms offer tax-related services ranging from preparing corporate returns and handling the taxes of expatriate execs to constructing tax shelters. Many companies prefer to have auditors retain their tax consulting work.
IT consulting remains a big business for three of the Big Five. But KPMG and Ernst & Young have already divested their IT consultants, and two others, PWC and Deloitte & Touche, plan to do so in the near future.
Companies outsource everything from running their HR departments to staffing computer help desks to the Big Five. Most controversial has been internal audits, an area in which Arthur Andersen has been a dominant player.
Although smaller than traditional players like McKinsey, the Big Five brought in $2.8 billion for work that includes advising companies on streamlining their processes or making manufacturing more efficient.
MERGERS & ACQUISITIONS
Not a huge source of revenue, but M&A work fills out the Big Five's promise of offering a wide array of services. The work includes drawing up a list of companies for acquisition and helping iron out integration issues.
Data: Consultants News, Bowman's Accounting Report