The Big Four accounting firms — Deloitte, EY, KPMG, and PwC — have once again made headlines over the past week. From launching a law firm in the U.S. to internal restructurings and debates over regulatory reforms, here’s a quick recap of the biggest developments shaping the future of the world’s top professional services firms.

KPMG Breaks New Ground with U.S. Law Firm Approval

In a historic move, KPMG has secured approval to launch KPMG Law US, becoming the first Big Four firm authorized to operate a law firm in the United States. This is made possible through Arizona’s groundbreaking regulatory reform, which allows non-lawyers to own law firms with court oversight.

KPMG Law US will provide legal operations consulting, managed services, and technology-driven legal solutions — complementing KPMG’s established tax and advisory services. Importantly, it will not provide legal services to clients audited by KPMG LLP to maintain independence. This move signals KPMG’s ambition to further integrate legal and consulting offerings under one roof, a potential game-changer for the U.S. legal and accounting landscapes.

EY Flags Serious Financial Weaknesses in UK Regeneration Project

EY auditors raised red flags after uncovering severe financial and governance weaknesses at the South Tees Development Corporation (STDC), which is responsible for the Teesworks regeneration project in the UK.

EY declined to sign off on the 2023-24 accounts due to the late publication of financial reports, leaving insufficient time for thorough audits. EY’s investigation follows a previous governmental review that identified governance failings and weak value-for-money practices at STDC. The firm is now considering issuing a statutory warning, formally alerting officials to the severity of these financial and operational issues.

EY Australia Prepares for Job Cuts Amid Market Struggles

Across the globe, EY Australia is considering targeted restructuring, including potential layoffs, to cope with worsening market conditions. The firm had anticipated stronger economic recovery in 2025, but demand for consulting services hasn’t met expectations.

The restructuring could impact around 100 technology consulting roles — about 1% of EY Australia’s workforce. The move comes as part of a broader trend of belt-tightening among the Big Four in Australia, especially after PwC Australia’s tax leaks scandal triggered heightened scrutiny on the sector.

Big Four Push to Lift Cap on ESG Fees for Audit Clients

A fresh regulatory battle is brewing in the UK, where the Big Four firms are lobbying to remove the cap on fees for Environmental, Social, and Governance (ESG) services provided to audit clients. Current rules, designed to maintain auditor independence, limit non-audit fees (including ESG consulting) to 70% of audit fees.

However, with demand for ESG assurance services soaring under new EU sustainability regulations, the Big Four argue that ESG work should be exempt from the cap. They emphasize that chartered accountants are uniquely qualified to handle ESG audits and that removing the cap would align the UK with more flexible European rules. This debate could significantly impact how Big Four firms grow their ESG service offerings.

Big Four Double Down on Hybrid Work Models

While many industries push for stricter return-to-office (RTO) policies, the Big Four are standing firm on hybrid work models. Deloitte, KPMG, EY, and PwC continue to embrace a mix of remote, in-office, and client-site work.

  • KPMG and Deloitte allow flexible hybrid schedules with minimal mandates.
  • EY recommends 2-3 days per week in the office, but leaves specifics to regional offices.
  • PwC UK has the strictest policy, requiring at least 3 days per week at either the office or client sites.

This hybrid-friendly stance highlights the firms’ commitment to flexibility and work-life balance, which remains a key factor in attracting and retaining top talent.

Conclusion

From legal innovations and restructuring efforts to regulatory battles and evolving work cultures, the past week has been eventful for the Big Four. As these firms navigate shifting market demands and regulatory pressures, their ability to adapt — whether through new services like KPMG’s law practice or bold policy advocacy on ESG — will shape the future of professional services globally.

Stay tuned for more updates as the Big Four continue to redefine the boundaries between accounting, consulting, and legal services.