Editing Big Four accounting firms (section)

== Legal structure ==
None of the "firms" within the Big Four is actually a single firm; rather, they are [[professional services networks]]. Each is a network of firms, owned and managed independently, which have entered into agreements with the other member firms in the network to share a common name, brand, intellectual property, and quality standards. Each network has established a global entity to co-ordinate the activities of the network.

Until 2020, [[KPMG]]<ref name="kpmg_governance">{{Cite web |date=2019-12-12 |title=Governance – KPMG Global |url=https://home.kpmg/xx/en/home/about/who-we-are/governance.html |access-date=2019-12-12 |publisher=KPMG |language=en-US}}</ref> was the only Big Four firm not registered as a UK private company, but rather the co-ordinating entity was a [[Swiss association]] (verein). However, KPMG International changed its legal structure from a verein to a [[co-operative]] under Swiss law in 2003,<ref>{{Cite web |title=Handelsregister des Kantons Zug |url=http://hrazg.ch/ |archive-url=https://web.archive.org/web/20070329094011/http://www.hrazg.ch/ |archive-date=29 March 2007}} (Registration Number CH-020.6.900.276-5)</ref> then to a UK limited company in 2020.<ref name=kpmg_governance /> For [[Deloitte]],<ref>{{Cite web |title=About Deloitte {{!}} Our global network of member firms |url=https://www2.deloitte.com/us/en/pages/about-deloitte/articles/about-deloitte.html |access-date=2019-12-12 |website=Deloitte United States |language=en}}</ref> [[PwC]]<ref>{{Cite web |title=How we are structured |url=https://www.pwc.com/gx/en/about/corporate-governance/network-structure.html |access-date=2019-12-12 |publisher=PwC |language=en-gx}}</ref> and [[Ernst & Young]],<ref>{{Cite web |title=Newsroom |url=https://www.ey.com/en_uk/newsroom |access-date=2019-12-12 |website=ey.com |language=en-UK}}</ref> the co-ordinating entity is a UK [[limited company]]. Those entities ''do not'' themselves perform external professional services, nor do they own or control the member firms. Nevertheless, these networks colloquially are referred to as "firms" for the sake of simplicity and to reduce confusion with lay-people. These [[Accounting network|accounting]] and professional services networks are similar in nature to how [[law firm network]]s in the legal profession work.

In many cases, each member firm practices in a single country, and is structured to comply with the [[Primary and secondary legislation|regulatory]] environment in that country.

Ernst & Young also includes separate legal entities which manage its three geographic areas: the Americas, Asia-Pacific, and [[Europe, the Middle East and Africa|EMEIA]] (Europe, the Middle East, India and Africa) groups.<ref>{{cite web |title=EY – Global office locations and contact information |url=https://www.ey.com/en_us/locations |publisher=Ernst & Young Global Limited |access-date=9 December 2023 }}</ref> These entities coordinate services performed by local firms within their respective areas, but ''do'' ''not perform'' services or hold ownership in the local entities.<ref>{{Cite web |title=Legal Disclaimer |url=http://www.ey.com/GL/EN/home/legal |url-status=dead |archive-url=https://web.archive.org/web/20180627144034/https://www.ey.com/gl/en/home/legal |archive-date=2018-06-27 |access-date=2016-10-11 |publisher=Ernst & Young}}</ref> There are rare exceptions to this convention; in 2007, KPMG announced a merger of four internationally distinct member firms (in the United Kingdom, Germany, Switzerland and Liechtenstein) to form a single firm, [[KPMG#Recent history|KPMG Europe LLP]].<ref>{{Cite web |last=Lomas |first=Ulrika |date=26 June 2007 |title=KPMG Swiss Merger To Create Europe's Largest Accountancy Firm |url=https://www.tax-news.com/news/KPMG_Swiss_Merger_To_Create_Europes_Largest_Accountancy_Firm____27706.html |archive-url=https://web.archive.org/web/20210508020405/https://www.tax-news.com/news/KPMG_Swiss_Merger_To_Create_Europes_Largest_Accountancy_Firm____27706.html |archive-date=8 May 2021 |access-date=7 May 2021 |website=Tax-News |url-status=usurped |publisher=Wolters Kluwer}}</ref>