Q1’14 Big4 Auditor Change Recap

The first quarter of 2014 is over, and I’ve put together a breakdown of Big4 auditor client gains and losses during the January – March period. Note that this only takes into account SEC registrants.

Starting with the losses:

Auditor Number of engagements lost*
Ernst & Young LLP 22
PricewaterhouseCoopers LLP 15
Deloitte & Touche LLP 6

* includes instances where auditors were dismissed, resigned, or declined to stand for reappointment.

Note that EY had 5 related companies all switch to KPMG. For purposes of this analysis, the 5 related companies were counted as 1.

Of EY’s losses, six were cases where EY declined to stand for reappointment. This is the second quarter in a row where EY has had double digit losses. Hard to imagine this isn’t a conscious decision on Ernies part to focus on the quality, rather than quantity of audit clients. Same story for PwC, albeit to a lesser extent.  Four of their losses were choices to not to stand for reappointment. KPMG had four of their former clients choose 2nd tier firm BDO as new auditor.

Now for the client gains:

Auditor Number of new engagements
Deloitte & Touche LLP 7
Ernst & Young LLP 6
PricewaterhouseCoopers LLP 3

Noteworthy gains for KPMG include American Airlines and Natus Medical. Deloitte picked up Hillshire Brands and FTD Companies. Big wins for PwC include Intuitive Surgical and Snyder’s-Lance (the geniuses who sandwich peanut butter between 2 orange crackers).

KPMG had the most wins, on a gross (+15) and net (+4) basis. They had no problem lapping up EY and PwC castoffs. PwC was net -12 clients and EY was net -16! Deloitte finished at a respectible +1.

That wraps up the Q1’2014 summary. Stop by again soon and catch our regular weekly updates right here on the Big4 Auditor Carousel. You can also check us out on Twitter for intra-week updates.

Round and round and round…


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