Tuesday, October 9, 2012

Value of engaging Big 4 accounting firms

In previous post, we invited opinions/ comments from our reader to discuss the value of engaging Big 4 accounting firms. After considering the opinions/ comments received from Accounting & Auditing blog's reader, we would like to share with you our thought:

- established reputation / recognition by the financial markets ( majority of the Blue Chip companies appointed Big 4 as their auditor);
- established audit methodology developed by respective firms (i.e. existence of technical department, etc);
- stronger support from administrative department;
- integrated support from member firms globally to ensure that audit of foreign subsidiaries are carried out smoothly;
- internal quality review policy carried out to review that quality of the audit meet the firm standard

Of course, while there is a value of engaging Big 4, there is a premium need to be paid for. Fee charged by Big 4 accounting firms is, on average, higher than those medium tier audit firm (e.g. BDO, Horwath, etc). Please feel free to drop us an email at myauditing@gmail.com if you woud like to find out more from us.

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