Accounting Leaders Continue Explosive Growth.

ATLANTA--(BUSINESS WIRE)--March 9, 1999--The nation's largest accounting firms continue to rack up impressive increases in revenue both in this country and worldwide, according to exclusive research by Public Accounting Report.

In their individual fiscal 1998s, the eight biggest firms collectively recorded 26.4% more U.S. net revenue to reach $27.20 billion, and took in 19.3% more globally, totaling $62.66 billion, according to PAR's Annual Survey of National Accounting Firms -- 1999. That performance continued the profession's good times and easily surpassed the 20.0% growth in U.S. revenue (hitting a combined $21.52 billion) in firms' fiscal 1997s.

Each year, Atlanta-based Public Accounting Report, the oldest and most widely circulated independent newsletter of the public accounting profession, surveys the top firms about their domestic and global revenues, practice mixes, staffings and office rosters, and analyzes changes in the numbers. For the 1999 study, the group included the Big Five firms -- Andersen Worldwide, Deloitte & Touche, Ernst & Young, KPMG and PricewaterhouseCoopers -- and the so-called Second Tier of BDO Seidman, Grant Thornton and McGladrey & Pullen.

Andersen Worldwide (which reports combined numbers for Arthur Andersen and Andersen Consulting, the latter of which proposes to split off from the parent firm) led the profession in FY98 in U.S. net revenue with $6.83 billion, followed by PricewaterhouseCoopers with $5.86 billion. That order was reversed on a global basis, with PricewaterhouseCoopers reporting $15.31 billion in net revenue and Andersen Worldwide $13.90 billion.

However, Deloitte & Touche had the highest growth rate in this country, hiking revenues by 30.6%, followed by KPMG with 27.5% more. Globally, the best performances were turned in by Andersen Worldwide (23.0% more revenue) and Deloitte & Touche (up 21.6%), according to the PAR survey.

The report also found that the profession's largest firms continued to chase big-margin consulting business and depend less heavily on lower-margin audit and assurance and tax work. In their last fiscal year, the eight firms raised the contribution by management consulting services to their billings to an average 46% from 43% a year earlier.

Public Accounting Report is published by Atlanta-based Strafford Publications Inc. Reporters can obtain full copies of the 1999 report, with tables, by phoning Executive Editor Jon McKenna at [phone].