The Big Eight Six Five

Who Are They?

In 19th century Britain and (primarily) 20th centurn America accountants set up shop. Basically, the original names were the founding partners.William Deloitte established his firm in London in 1845 (the first Big Eight), Charles Haskins &  Elijah Sells opened for buiness in New York in 1896 (the first American Big Eight). These were not the first nor, at the time of founding, the biggest. But over time they became the most successful. Generally, their clients were the largest firms and the accounting firms grew to provide needed client services. They formed corresponding relationships with other accounting firms across the country and across the globe as their clients expanded. Many of these firms would be acquired by the larger firms. The partners in charge were serious about the profession and provided leadersip in forming state and national societies and recommending legislation to license accountants--after appropriate training.

The Founders

Arthur Andersen (1885-1947) - In 1913 Arthur Andersen and Clarence Delaney, both from Price Waterhouse, bought out The Audit Company of Illinois to form Andersen, Delaney & Co. It became Arthur Andersen & Co. in 1918. Andersen Consulting split from the parent in 1989 to become the largest consulting firm in the world.
William Cooper - William Cooper opened his London office in 1854. He was joined by three brothers to form Cooper Brothers & Co. in 1861. Coopers & Lybrand merged in 1956.
William Deloitte - William Deloitte founded his London firm in 1854. Deloitte began collaborating with Haskins & Sells in 1905 and the firms merged in 1978. Deloitte merged with Touche Ross in 1989.
Alwin & Theodore Ernst - The Ernst brothers formed a partnership in Cleveland in 1903. Ernst & Ernst affiliated with Whinney in 1924 and they merged in 1979. Ernst & Whinney merged with Arther Young in 1989.
Charles Haskins (1852-1903) - Charles Haskins began a New York practice in 1886. He worked with Sells on the Dockery Commission in 1895 (on financial reform of the federal government) and they became partners that same year. Haskins & Sells began collaborating with Deloitte, Plender, Griffins in 1905 and the firms merged in 1978. DH&S merged with Touche Ross in 1989.
William Lybrand, Adam & Edward Ross, & Robert Montgomery - Their firm was founded in 1898 in Philadelphia. They merged with Cooper Brothers in 1956 to form Coopers & Lybrand.
James Marwick James Marwick opened an office in Glasgow in 1887 and New York in 1896. He formed a partnership with Roger Mitchell in 1897, which merged with William Peat in 1911. In 1986 PMM merged with KMG (for Klynveld Main Goerdeler) Main Hurdman to form KPMG Peat Marwick.
William Peat - William Peat founded his company in London in 1867 and merged with Marwick, Mitchell in 1911.
Samuel Price - Samuel Price and Edwin Waterhouse formed a partnership with William Holyland in 1849 in London. In 1890 Price Waterhouse established a permanent New York office in 1890 as Jones, Caesar & Co. They merged with Coopers & Lybrand in 1998.
Elijah Sells - Elijah Sells formed a partnership with Charles Haskins in 1895.
George Touche - George Touche (originally Touch--rhymes with clock) formed a partnership with John Niven in 1900 in London; later Touche, Niven, Bailey & Smart; Touche, Ross, Bailey & Smart; shortened to Touche Ross in 1969.  Merged with Deloitte in 1989.
Edwin Waterhouse - Edwin Waterhouse formed a partnership with Samuel Price in 1849 in London. Merged with Coopers Lybrand in 1998.
Frederick Whinney - Frederick Whinney joined the London firm of Harding & Pullein in 1849, latter Whinney, Smith & Whinney. Merged with Ernst & Ernst in 1979 and Arthur Young in 1989.
Arthur Young - Arthur Young was a Scottish barrister and opened a Chicago office in 1894 to handle the affairs of British investors. Merged with Ernst & Whinney in 1989.

The Big 8 in 1960

 
Firm Partners- 1960 U. S. Offices Foreign Countries Audits of 500 Largest Corporations
Arthur Andersen 171 33 21 47
Ernst & Ernst 132 107 37 63
Haskins & Sells 176 58 42 61
Lybrand, Ross Bros. & Montgomery 126 43 27 52
Peat Marwick 190 87 55 61
Price Waterhouse 101 46 55 110
Touche Ross 71 31 34 26
Arthur Young 104 40 51 44

Now Only Five

Arthur Andersen

Deloitte & Touche

Ernst & Young

KPMG Peat Marwick

PriceWaterhouseCoopers


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