Deloitte took the top spot for new SEC audit client wins among all firms this year, with 41 engagements and 20 losses, for a net of 21 new SEC audit clients. BDO USA, the previous annual leader, had 16 new engagements this year.
Moss Adams netted the most SEC audit clients, 36 in total, thanks to their combination with Hein & Associates in November, as noted in our Q4 blog.
Overall, there were 216 engagements and 204 departures among the global and national firms (including Moss Adams) this year.
The table below presents a comprehensive view of the gains and losses of the major global and national firms. It shows how many SEC audit clients each auditor gained or lost, and also the auditor from or to which the client was won or lost.
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Deloitte and Moss Adams also ranked first and second in net audit fees won, bringing in $50.6 million and $10.9 million, respectively. Of note, KPMG may have lost a net of 15 clients, but they still ranked third in net fees won, bringing in $9.6 million. The 16 SEC audit clients they won offset the 31 they lost, most notably the $18.87 million and $16.16 million won from Global Eagle Entertainment and Avangrid, as mentioned by Accounting Today.
In the following tables, we disaggregate the auditor changes by the size of the companies gained or lost, as represented by the companies’ filing status. The first table shows auditor changes for Large Accelerated Filers, i.e., those with a worldwide public float of more than $700 million.
The next table presents a sample of the largest wins and losses for Accelerated Filers, which are companies with public float between $75 million and $700 million.
Finally, the last table presents the top five gains and losses for Smaller Reporting Companies.
The most auditor changes activity for 2017 was seen among the smaller reporting companies. Fruci & Associates held the third spot among all firms for the year, with 19 engagements and 1 departure, for a net of 18 new SEC audit clients, 17 of those categorized as a smaller reporting company. BF Borgers was not far behind, with 22 engagements and 7 departures, for a net of 15 new SEC audit clients.
Audit Analytics actively tracks auditor changes for all foreign and domestic SEC registrants, which is used by our clients for up-to-date market intelligence. In addition to our quarterly and yearly blogs, we also offer custom auditor change analyses. For access to our Auditor Changes database, or for more information, call us at (508) 476-7007 or e-mail info@auditanalytics.com.