Auditor Changes in Canada: 2015

Audit fees for companies in Canada topped $1.6 billion in 2014, and the competition for those fees can be fierce. Last year, there were 318 total auditor departures, of which 81% were dismissals and 19% were auditor resignations. The estimated percentage of Canadian (SEDAR) filers who reported an auditor change in calendar year 2015 was approximately 10%, which is consistent with the number of reported auditor changes we see for US SEC filers.

As we do with our SEC Auditor Changes Roundups, the following table shows wins and losses for the Big Four and national accounting firms in Canada.

(click to expand image)

Table 1_Wins and Losses

The big winners in calendar 2015 were PwC, MNP LLP, McGovern Hurley Cunningham, and Dale Matheson. The Big Four firm won 31 clients against a loss of 13 for a net increase of 18 new Canadian (SEDAR) audit clients, and an estimated $27 million in new audit fees. MNP won a net of 13 clients for $0.6 million, McGovern Hurley won 11 net clients and $0.5 million, and Dale Matheson won 21 clients and an estimated $0.3 million in new audit fees.

Interestingly, 20 of PwC’s 31 total audit wins came from National, Regional & Local firms. On the flip side, 10 of MNP’s 33 total wins came from Big Four firms.

The majority of PwC’s new audit fees came from two big wins. The first was Royal Bank of Canada, whose 2014 audit fees were $23.2 million paid to Deloitte. The second major win was Empire Company Limited, who paid Grant Thornton $2.7 million in audit fees for 2014.

Ernst & Young might have lost a net of 13 clients, but they grew their estimated new audit fees by over $0.7 million: good enough for second overall.

Audit Analytics tracks audit feesauditor changes, and restatements for Canadian (SEDAR) companies, with the ability to create daily email alerts for new disclosures by industry, auditor, location, and more. In addition to these and our many other databases, we also offer qualitative red flag alerts for due diligence and risk assessment. Please contact Audit Analytics for an online demonstration or to learn more about these data sets. You can call us at (508) 476-7007 or e-mail