Big4 Auditor Changes week ending 07 Feb 2016

As much as I like putting together a table of auditor changes every week, sometimes, I just don’t get any cooperation. No changes involving Big4 firms this week.

So I don’t leave you completely empty-handed, take a look at this post from a couple months ago on audit fees. You’ll be surprised at how much some companies pay their auditors.

Round and round and round…

Fortune 100 Audit Fees – 2014

Back for a third year of audit fee data. I’ve pulled together information on fees paid by the 100 largest of the Fortune 500 companies (“Fortune 100”).  I’m presenting it two ways;

  1. Sorted by Fortune 100 ranking (see table below)
  2. Sorted by audit fees (see here).

Here’s the executive summary:

  • Audit fees vary widely, ranging from $2.2 million (INTL FCStone) to $100.9 million (Bank of America)*
  • When ranked by audit fees paid, 6 of the top 10 companies are in the financial services sector
  • The Big4 firms audit 99% of the Fortune 100; PwC audits 35 of 100, EY 27, Deloitte 22, KPMG 15, and non-Big4 Grant Thornton audits 1
  • In terms of audit fee dollars, PwC got 43%, Deloitte 23%, EY 21%, and KPMG 13%
  • Pfizer saw the biggest drop in audit fees year over year, decreasing nearly $17 million, or 38%

* This is the third year in a row that INTL FCStone and BofA have ranked lowest and highest, respectively, in fees paid to auditors.

And before wading into the table, you should know:

  • the information in the first four columns comes from the Fortune website
  • the information in the Auditor, Audit, Audit-Related, Tax, and All Other columns comes from SEC filings (usually a 14A proxy statement) and relates to fiscal years (not necessarily calendar years).
  • this year I’m including data for Audit-related, tax, and all other fees paid to auditors

Strap in, here we go:

2014 Audit Fees
Fortune 100 Rank Company Revenues Market Cap at 3/31/15 Auditor Audit Audit-related, Tax, and All other Total
/———$ billion——–/ /————–$ million————/
1 Wal-Mart Stores 485.7 265.3 EY 17.0  2.1 19.1
2 Exxon Mobil 382.6 356.5 PwC 27.3  5.9 33.2
3 Chevron 203.8 197.4 PwC 27.2  3.3 30.5
4 Berkshire Hathaway 194.7 357.3 Deloitte 32.5  3.0 35.5
5 Apple 182.8 724.8 EY 10.3  2.0 12.3
6 General Motors 155.9 60.4 Deloitte 36.0 15.0 51.0
7 Phillips 66 149.4 42.6 EY 11.6   1.3 12.9
8 General Electric 148.3 249.8 KPMG 78.2 12.9 91.1
9 Ford Motor 144.1 64.2 PwC 37.8 10.0 47.8
10 CVS Caremark 139.4 117.2 EY   8.8   2.5 11.3
11 McKesson 138.0 52.7 Deloitte 11.1   7.4 18.5
12 AT&T 132.4 169.5 EY 23.3 12.4 35.7
13 Valero Energy 130.8 32.7 KPMG   7.0   0.4   7.4
14 UnitedHealth Group 130.5 112.8 Deloitte 16.1   4.6  20.7
15 Verizon Communications 127.1 198.4 EY 26.5  13.1  39.6
16 AmerisourceBergen 119.6 25.0 EY   6.1   2.8    8.9
17 Fannie Mae 116.5 2.7 Deloitte 33.3   0.2  33.5
18 Costco Wholesale 112.6 66.7 KPMG   5.7   1.1    6.8
19 Hewlett-Packard 111.5 56.6 EY 30.0 20.5  50.5
20 Kroger 108.5 37.6 PwC   5.2    0.9    6.1
21 J.P. Morgan Chase & Co. 102.1 225.9 PwC 60.3 30.6  90.9
22 Express Scripts Holding 100.9 63.2 PwC   3.4    1.3    4.7
23 Bank of America Corp. 95.2 161.9 PwC 82.2 18.7 100.9
24 International Business Machines 94.1 158.6 PwC 35.0  41.2  76.2
25 Marathon Petroleum 91.4 28.0 PwC   7.7    0.1   7.8
26 Cardinal Health 91.1 29.8 EY   5.5    3.5   9.0
27 Boeing 90.8 105.0 Deloitte 26.4    0.2 26.6
28 Citigroup 90.6 156.3 KPMG 65.3  33.7 99.0
29 Amazon.com 89.0 172.8 EY   9.8    0.9 10.7
30 Wells Fargo 88.4 279.9 KPMG 37.9    9.3 47.2
31
Microsoft 86.8 333.5 Deloitte 28.2  18.1 46.3
32 Procter & Gamble 84.5 221.3 Deloitte 31.6    7.3 38.9
33 Home Depot 83.2 148.5 KPMG   4.8    0.7   5.5
34 Archer Daniels Midland 81.2 29.8 EY 14.8    3.1 17.9
35 Walgreen 76.4 92.4 Deloitte   4.5    3.6   8.1
36 Target 74.5 52.7 EY   5.9    2.7   8.6
37 Johnson & Johnson 74.3 279.7 PwC 36.1   18.3 54.4
38 Anthem 73.9 41.2 EY 11.9     2.3 14.2
39 MetLife 73.3 56.6 Deloitte 71.4   10.4 81.8
40 Google 71.5 377.5 EY 13.9     7.0 20.9
41 State Farm Insurance Cos. 71.2 * PwC *     * *
42 Freddie Mac 69.4 1.5 PwC 28.0    2.8 30.8
43 Comcast 68.8 143.5 Deloitte 16.0    7.2 23.2
44 PepsiCo 66.7 141.7 KPMG 25.3    3.3 28.6
45 United Technologies 65.1 106.5 PwC 42.1  25.0 67.1
46 American International Group 64.4 74.2 PwC 66.3  33.9 100.2
47 United Parcel Service 58.2 87.5 Deloitte 13.6    1.8 15.4
48 Dow Chemical 58.2 55.5 Deloitte 23.2  15.7 38.9
49 Aetna 58.0 37.1 KPMG 14.9    1.7 16.6
50 Lowe’s 56.2 70.8 Deloitte   3.1    0.9   4.0
51 ConocoPhillips 56.0 76.7 EY 14.1    2.5 16.6
52 Intel 55.9 148.1 EY 17.8    3.1 20.9
53 Energy Transfer Equity 55.7 34.1 Grant Thornton   8.5    1.0    9.5
54 Caterpillar 55.2 48.5 PwC 32.7  25.5 58.2
55 Prudential Financial 54.1 36.5 PwC 47.0    6.0 53.0
56 Pfizer 49.6 213.6 KPMG 32.4    8.2 40.6
57 Walt Disney 48.8 178.3 PwC 18.6    6.2 24.8
58 Humana 48.5 26.6 PwC   6.9    1.8   8.7
59 Enterprise Products Partners 48.0 67.4 Deloitte   4.7       –   4.7
60 Cisco Systems 47.1 140.5 PwC 20.7    7.5 28.2
61 Sysco 46.5 22.3 EY   5.2    3.7   8.9
62 Ingram Micro 46.5 3.9 PwC   9.2    0.8 10.0
63 Coca-Cola 46.0 177.1 EY 29.0  10.6 39.6
64 Lockheed Martin 45.6 64.2 EY 16.9    4.4 21.3
65 FedEx 45.6 46.9 EY 14.3    2.0 16.3
66 Johnson Controls 43.9 33.2 PwC 23.5  14.5 38.0
67 Plains GP Holdings 43.5 17.4 PwC   4.7    1.9   6.6
68 World Fuel Services 43.4 4.1 PwC   4.7    0.1   4.8
69 CHS 44.5 PwC   3.7    1.4   5.1
70 American Airlines 42.7 36.8 KPMG   6.8    2.7   9.5
71 Merck 42.2 163.2 PwC  28.9  18.5 47.4
72 Best Buy 41.9 13.3 Deloitte    3.1    1.2   4.3
73 Delta Air Lines 40.4 37.1 EY    3.6    1.4   5.0
74 Honeywell International 40.3 81.4 PwC 23.0    6.3 29.3
75 HCA Holdings 40.1 31.6 EY   8.3    6.4 14.7
76 Goldman Sachs Group 40.1 81.9 PwC 53.5  10.2 63.7
77 Tesoro 40.1 11.5 EY   4.1    0.2   4.3
78 Liberty Mutual Insurance Group 39.8 * EY *        * *
79 United Continental Holdings 38.9 25.8 EY  3.8    0.8  4.6
80 New York Life Insurance 38.7 * PwC *         * *
81 Oracle 38.3 188.4 EY 23.4    1.6 25.0
82 Morgan Stanley 38.0 70.5 Deloitte 49.0    8.6 57.6
83 Tyson Foods 37.6 15.6 PwC   4.5    1.4   5.9
84 Safeway 36.6 * Deloitte *         * *
85 Nationwide 36.3 * KPMG *         *  *
86 Deere 36.1 29.8 Deloitte 15.8    0.7 16.6
87 DuPont 36.0 64.7 PwC *        * *
88 American Express 36.0 79.6 PwC 21.3    4.7 26.0
89 Allstate 35.2 29.6 Deloitte   9.3    0.9 10.2
90 CIGNA 34.9 33.5 PwC 10.8    2.3 13.1
91 Mondelez International 34.2 59.2 PwC 16.0    5.1 21.1
92 TIAA-CREF 34.2 * PwC *       * *
93 INTL FCStone 34.1 0.6 KPMG   2.2       –   2.2
94 Massachusetts Mutual Life Insurance 33.6 * KPMG *       *            *
95 DIRECTV 33.3 42.8 Deloitte **       **     **
96 Halliburton 32.9 37.3 KPMG 11.8     4.2 16.0
97 Twenty-First Century Fox 31.9 71.9 EY 17.5   17.3 34.8
98 3M 31.8 104.8 PwC 15.9     3.9 19.8
99 Sears Holdings 31.2 4.4 Deloitte   7.5     4.8 12.3
100 General Dynamics 30.9 44.8 KPMG 18.0     4.2 22.2

* Unable to locate a filing with audit fee data for this company. If you know where to find the information, let me know (hit me up on Twitter @auditorcarousel).

** DIrecTV acquired by AT&T

Still with me? Page 2 is where things get more interesting. It’s audit fee data sorted in descending order so you can easily see who pays the most.

Fortune 100 Audit Fees – 2013

Update: 2013 data is good, but more recent data from 2014 is now available

Big companies pay big audit fees. But how much exactly do they pay? I’ve pulled together data on fees paid by the 100 largest of the Fortune 500 companies (“Fortune 100”).  I’m presenting it two ways;

  1. Sorted by Fortune 100 ranking (see table below)
  2. Sorted by audit fees (see here).

Here’s the executive summary:

  • Audit fees vary widely, ranging from $2.8 million (INTL FCStone) to $86.5 million (Bank of America)*
  • When ranked by audit fees paid, 8 of the top 10 companies are in the financial services sector
  • The Fortune 100 is 99% Big4 territory; PwC audits 35 of 100, EY 28, Deloitte 22, KPMG 14, and non-Big4 Grant Thornton audits 1
  • In terms of audit fee dollars, PwC got 43%, EY 19%, Deloitte 23%, and KPMG 15%
  • Pfizer saw the biggest drop in audit fees year over year, decreasing nearly $17 million, or 38%

*INTL FCStone and BofA ranked lowest and highest, respectively in audit fees paid in 2012 as well. Interestingly, BofA paid less in 2013 vs 2012, while INTL FCStone paid more.

And before diving into the table, you should know:

  • the information in the first four columns comes from the Fortune website
  • the information in the Auditor and 2013 & 2012 Audit Fees columns comes from SEC filings (usually a 14A proxy statement) and relates to fiscal years (not necessarily calendar years).
  • this is only audit fee data. Audit-related, tax, and all other fees paid to auditors are not included

Strap in, this goes on for a while:

Fortune 100 Rank Company Name Revenues ($ billion) Market Cap ($ billion) Auditor 2013 Audit Fees ($ million) 2012 Audit Fees ($ million)
1 Wal-Mart Stores 476.3 246.8 EY 16.6 13.5
2 Exxon Mobil 407.7 422.1 PwC 28.0 27.9
3 Chevron 220.4 227.0 PwC 26.6 25.2
4 Berkshire Hathaway 182.2 308.0 Deloitte 30.7 26.3
5 Apple 170.9 479.1 EY 8.4 7.1
6 Phillips 66 161.2 45.3 EY 11.0 10.9
7 General Motors 155.4 54.7 Deloitte 38.0 36.0
8 Ford Motor 146.9 61.5 PwC 37.7 36.5
9 General Electric 146.2 259.5 KPMG 84.3 84.8
10 Valero Energy 137.8 28.3 KPMG 7.5 10.1
11 AT&T 128.8 182.6 EY 23.1 21.8
12 CVS Caremark 126.8 88.5 EY 8.2 6.5
13 Fannie Mae 125.7 4.5 Deloitte 35.5 39.2
14 UnitedHealth Group 122.5 81.1 Deloitte 18.1 17.4
15 McKesson 122.5 40.6 Deloitte 8.5 7.4
16 Verizon Communications 120.6 197.0 EY 24.6 23.9
17 Hewlett-Packard 112.3 61.3 EY 34.9 30.6
18 J.P. Morgan Chase & Co. 106.3 229.8 PwC 60.4 59.5
19 Costco Wholesale 105.2 49.1 KPMG 5.0 4.8
20 Express Scripts Holding 104.6 58.3 PwC 3.5 4.9
21 Bank of America Corp. 101.7 181.1 PwC 86.5 90.9
22 Cardinal Health 101.1 24.0 EY 5.3 5.3
23 International Business Machines 99.8 200.4 PwC 34.2 34.7
24 Kroger 98.4 22.3 PwC 5.2 4.4
25 Marathon Petroleum 94.0 25.5 PwC 6.8 6.8
26 Citigroup 93.6 144.6 KPMG 66.5 67.3
27 Archer Daniels Midland 89.8 28.5 EY 14.0 14.5
28 AmerisourceBergen 89.1 15.0 EY 6.0 4.0
29 Wells Fargo 88.1 261.2 KPMG 36.1 33.5
30 Boeing 86.6 93.3 Deloitte 25.5 26.2
31 Procter & Gamble 84.2 218.5 Deloitte 31.5 29.9
32 Freddie Mac 81.2 2.5 PwC 30.1 30.7
33 Home Depot 78.8 109.3 KPMG 5.1 4.7
34 Microsoft 77.8 340.2 Deloitte 23.1 23.1
35 Amazon.com 74.5 154.5 EY 9.5 6.5
36 Target 72.6 38.3 EY 4.9 3.7
37 Walgreen 72.2 62.7 Deloitte 4.3 3.0
38 WellPoint 71.5 28.1 EY 10.6 9.9
39 Johnson & Johnson 71.3 277.9 PwC 34.7 37.5
40 American International Group 68.7 73.2 PwC 69.4 74.6
41 State Farm Insurance Cos. 68.3 75.9 PwC * *
42 MetLife 68.2 59.3 Deloitte 70.2 71.0
43 PepsiCo 66.4 128.3 KPMG 24.1 24.1
44 Comcast 64.7 130.4 Deloitte 16.3 13.4
45 United Technologies 62.9 106.9 PwC 38.3 36.6
46 Google 60.6 375.4 EY 13.7 14.6
47 ConocoPhillips 59.4 86.3 EY 13.7 14.4
48 Dow Chemical 57.1 59.1 Deloitte 23.7 25.2
49 Caterpillar 55.7 63.4 PwC 32.4 31.9
50 United Parcel Service 55.4 89.5 Deloitte 13.3 12.4
51 Pfizer 53.8 205.4 KPMG 27.4 44.0
52 Lowe’s 53.4 49.8 Deloitte 3.2 2.7
53 Intel 52.7 128.3 EY 17.8 18.6
54 Energy Transfer Equity 48.8 26.1 Grant Thornton 8.1 5.9
55 Cisco Systems 48.6 115.5 PwC 20.2 16.7
56 Enterprise Products Partners 47.7 64.9 Deloitte 4.1 3.8
57 Aetna 47.3 27.2 KPMG 13.4 9.5
58 Coca-Cola 46.9 170.3 EY 28.8 30.7
59 Lockheed Martin 45.4 52.5 EY 15.3 15.2
60 Best Buy 45.2 9.2 Deloitte 3.8 4.3
61 Walt Disney 45.0 140.3 PwC 19.6 19.3
62 CHS 44.5 * PwC 2.9 2.6
63 Sysco 44.4 21.1 EY 4.9 4.1
64 FedEx 44.3 39.2 EY 13.6 12.6
65 Merck 44.0 166.9 PwC 28.7 27.5
66 INTL FCStone 43.8 0.4 KPMG 2.8 1.9
67 Safeway 43.0 8.5 Deloitte ** 7.4
68 Johnson Controls 42.7 31.4 PwC 23.2 22.8
69 Ingram Micro 42.6 4.6 PwC 9.1 8.4
70 Plains GP Holdings 42.2 3.8 PwC 5.2 0.0
71 World Fuel Services 41.6 3.2 PwC 3.8 3.6
72 Prudential Financial 41.5 39.2 PwC 45.0 43.0
73 Humana 41.3 17.4 PwC 5.4 5.9
74 Goldman Sachs Group 40.9 73.6 PwC 52.2 55.5
75 Tesoro 39.2 6.7 EY 4.3 4.2
76 Liberty Mutual Insurance Group 39.1 * EY * *
77 Honeywell International 39.1 72.5 PwC 20.3 20.3
78 United Continental Holdings 38.3 16.6 EY 3.6 4.2
79 HCA Holdings 38.0 23.3 EY 7.7 7.2
80 Deere 37.8 33.6 Deloitte 16.3 15.3
81 Delta Air Lines 37.8 29.4 EY 4.6 4.6
82 Oracle 37.2 182.4 EY 21.6 20.7
83 Morgan Stanley 36.8 61.6 Deloitte 46.2 45.7
84 Hess 36.7 27.0 EY 9.9 10.6
85 Twenty-First Century Fox 36.6 72.1 EY 29.5 19.1
86 DuPont 36.5 61.5 PwC 15.1 13.6
87 Sears Holdings 36.2 5.1 Deloitte 7.4 8.0
88 New York Life Insurance 36.0 * PwC * *
89 Mondelez International 35.3 58.8 PwC 15.9 18.1
90 American Express 34.9 95.7 PwC 20.7 20.3
91 Nationwide 34.5 * KPMG * *
92 Allstate 34.5 25.3 Deloitte 9.6 9.3
93 Tyson Foods 34.5 15.0 PwC 4.0 3.8
94 Supervalu 34.3 1.8 KPMG 3.0 2.4
95 TIAA-CREF 33.8 * PwC * *
96 Massachusetts Mutual Life Insurance 33.4 * KPMG * *
97 CIGNA 32.4 22.7 PwC 9.4 8.6
98 DIRECTV 31.8 38.9 Deloitte 6.3 5.7
99 General Dynamics 31.2 37.5 KPMG 19.0 19.3
100 Philip Morris International 31.2 129.8 PwC 23.5 22.6

* Unable to determine audit fees for mutual insurance companies. If you know which filing it’s buried in, let me know.

** Not filed due to acquisition by Albertsons.

Now that you’ve waded through all that, Page 2 is where things get more interesting. It’s the same data reformatted and sorted in descending order by audit fees.