jallenmorris wrote:
terp06 wrote:
I'd definitely put Oliver Wyman, LEK, Parthenon, ZS Associates, Cambridge Associates, and AT Kearney above Deloitte from a pure prestige perspective. Deloitte's "prestige" is held down by the fact that they do IT consulting work and audit work.
It is interesting that they mentioned PwC, KPMG, and Ernst & Young on this list. As far as I know, these firms do not engage in consulting assignments and they only do audit work. Have things changed over the past year?
What do you think it's called when a company hires another company on a short-term basis to assist on projects or provide advice in a particular area? How does audit work not fall into this area?
from
https://www.dictionary.com:
Consulting -
adjectiveemployed or involved in giving professional advice...
I used to work for a Big 4 accounting firm in Audit. Go read up on Sarbanes-Oxley 404 and conflicts of interest for auditors, not dictionary.com. After SOX passed in 2002, the Big 4 accounting firms had to divest their consulting practices because it was a conflict of interest. I know that Ernst & Young divested Capgemini, PwC/KPMG stopped doing consulting work, and Deloitte separated Deloitte & Touche (audit) from Deloitte Consulting (consulting). Consulting engagements are done primarily for profit. Audit engagements are done primarily for the SEC and the integrity of the financial markets.
The information above is current as of last year when I worked at a Big 4. I have no idea if anything has changed since July 2007 as I have not been keeping up on developments in the audit world.
To solaris - this is really surprising. If I were to guess, PwC was advising the firm on internal audit procedures and basically assisting them with compliance matters related to Sarbanes-Oxley. This is one of the few "advisory" related tasks that Big 4 firms are still allowed to do after SOX 404. What surprised me most is that you mentioned McKinsey was on the engagement before - I didn't think that McKinsey worked on compliance engagements very much but I could be wrong.
Please keep in mind that the above information is only accurate as of July 2007, as I haven't kept up on things. Also, please keep in mind that the above information is only accurate for the United States. I believe that other countries have far more relaxed regulations regarding the kind of work that their independent audit firms can do.
Also, these firms still provide tax advice, conduct financial due diligence and valuations, conduct accounting fraud investigations, and do various other things you would expect an accounting firm to do. All of these activities are considered to be "advisory", but not in the classic management consulting sense. If you want to call it consulting because you think it fits the description on dictionary.com, be my guest. I certainly don't. Just for fun, the guy who sold me my car on Tuesday had a title of "Sales Consultant". I thanked him for the professional advice afterwards.