Credit cruch effects on big4


#1

hey guys

i dont know if this is something which you really will need to talk abt at interview, but in case/out of interest what are the effects of the crunch on the bi4, the only thing i can think of is that if firms are having to pay higher rates of interest and subsequently going bust, less clients kpmg have?
or maybe firms will want to use their advisory services to downsize operations and operate more efficiently cutting down costs and scale, maybe using corp finance to sell off assets/merge horizontally with similar size firms…

is this on the right lines?

thanx


#2

Which service line have you applied for?

The credit crunch ultimately affects everybody, including business. For some that are only borderline profitable the extra cost of lending might push them under. Consider the importance of a reliable, accurate audit in this climate - the credit crunch has made it imperative for audit companies to act with integrity and identify areas of risk as appropriate (more so than usual!).

This is not to discount what you say, which may also be true. I’m sure there are many correct answers to the question! :slight_smile:

Tom.


#3

corporate tax…i guess tax could just be abt making sure ur paying the correct amount to save costs and making sure firms are aware of any exemptions…