Big4 Auditor Changes week ending 03 Aug 2014

Just a few notes this week. Honeywell, a Fortune 100 company, went from PwC to Deloitte after a competitive bid process. A few more companies got on file regarding the KPMG acquisition of Rothstein Kass. Other than that, well, take a look for yourself:

Filing Date Company Location Old Auditor New Auditor Dismissal / Resignation
7/28/2014 Hennessy Capital Acquisition Corp. TX Rothstein Kass & Company, P.C. KPMG LLP Resignation
7/28/2014 Terrapin 3 Acquisition Corporation NY Rothstein Kass & Company, P.C. KPMG LLP Resignation
7/29/2014 VBI Vaccines Inc. (formerly Paulson Capital Corp.) MA Deloitte & Touche LLP Peterson Sullivan LLP Dismissal
7/30/2014 Honeywell International, Inc. NJ Pricewaterhouse Coopers LLP Deloitte & Touche LLP Dismissal
8/1/2014 Teucrium Commodity Trust VT Rothstein Kass & Company, P.C. KPMG LLP Resignation

Speaking of Fortune 100 companies, audit fee data, updated for 2013, will be available this coming week. If you want to be among the first to receive it, hit the Follow button below and on the right. In the meantime, whet your appetite with the 2012 data here.

Round and round and round…

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2 Responses to Big4 Auditor Changes week ending 03 Aug 2014

  1. What do you think justifies a firm charging a higher audit fee? Do they charge a premium if lots of on-site visits are necessary to check inconsistencies in the stats? Surely that would give the firm a vested interest in doing a thorough job, thus counteracting cronyism? http://jessking1311.wordpress.com

    • Firms charge as much as the client will pay, and they justify it in a number of ways. The biggest factor they like to cite is the # of hours they will spend on the audit. Increases in anticipated audit hours are generally explained as being due to a growing business, and/or additional PCAOB audit documentation requirements. If a lot of travel is involved, they may incorporate that too, but it’s not usually a main driver in overall fees.

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