Q3’14 Big4 Auditor Change Summary

Another quarter gone by, another summary put together. This one covers the client gains and losses by Big4 firms in the July – September 2014 period. Note that this only takes into account SEC registrants, and numbers are based on the 8-K filing date.

Starting with the losses:

Auditor Number of engagements lost*
Ernst & Young LLP 12
PricewaterhouseCoopers LLP 10
Deloitte & Touche LLP 6

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

15 out of 22 of the PwC and EY clients that switched auditors ended up going to other Big4 firms. Conversely, most of the former KPMG and Deloitte clients went with smaller firms, with just 3 out of 14 sticking with the Big4. This trend mirrors what we saw in the second quarter.

Now for the gains:

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

It should be noted that of KPMG’s 17 new clients, 13 came as a result of the KPMG acquisition of Rothstein Kass, meaning just 4 came organically.

On a net basis, only KPMG made progress in the second quarter, but even that comes with an asterisk; as just noted, most of the gains were a result of the Rothstein Kass acquisition. Factoring those out, KPMG was a net -4. EY was net -5, PwC -3, and Deloitte also -3. A down quarter for the Big4, though hardly earthshaking.

When we’re not putting together quarterly summaries, we publish weekly updates here on the Big4 Auditor Carousel. We’re on Twitter, too @auditorcarousel.

Round and round and round…


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