Just read a very interesting article on WSJ. Thought it'd be interesting to share with you guys!
As you know, the Big 4 are known for audit/tax/accounting; however, in recent reports, it seems that is no longer their largest revenue generator. Consulting has grown exponentially within the four and now accounts for over 40% of revenues.
For years, the Big Four accounting firms have pushed into consulting, seeking growth their core auditing businesses weren't providing. Since 2012, the firms' combined global revenue from consulting and other advisory work has risen 44%, compared with just 3% growth from auditing.
Likewise, of the firms' $17 billion in revenue growth for 2017, 42% was from consulting, with audit now taking place in second at 35%.
With all the focus on their advisory roles and the huge expansion this serves as no surprise to me. EY Parthenon,S&O/ , &, and Advisory are all very sought after by undergrads and have seen tremendous growth in workflow, prestige, exit opps, etc. Do you see any downsizing in audit for the future due to automation or something of a similar sort? How big do you think these guys can get at consulting? day?