Big Five
Financial Dictionary — Accounting Profession
Definition
Big Five The largest accountancy firms: KPMG Peat Marwick, Price Waterhouse Coopers, Ernst & Young, Deloitte & Touche and Arthur Andersen. Individual country arms of these groups may have slightly different names.
Detailed Explanation
“Big Five” historically referred to the five largest accounting firms before major industry changes (including the collapse of Arthur Andersen). The term is largely historical today.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **Big Five** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.