Auditor Changes Roundup: 2019 Annual Summary

Deloitte, with a net of 26 SEC audit clients, accounts for the largest number of new clients among all audit firms in 2019. Prager Metis followed with a net of 21 SEC audit clients.

Deloitte’s 37 total engagements in 2019 represents the largest number of new client engagements among all audit firms. Marcum was close behind with 35 engagements for the year. Prager Metis came in third among all audit firms, in terms of engagements, with 28 new SEC audit clients.

As mentioned in Accounting Today, Prager Metis added 25 new clients in 2019 as a result of merger activity: 19 came from its February 2019 merger with AMC Auditing and 6 came from its July 2019 merger with MJF & Associates.

Overall, there were 175 engagements and 211 departures during 2019 among the Big Four and major global and national firms.

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.

(Click to expand image.)

EY and Deloitte ranked first and second in new audit fees won in 2019, bringing in $46.23 million and $40.41 million, respectively. BDO landed the third spot for the most audit fees won with $25.28 million.

In the following tables, we disaggregate the auditor changes by the size of companies gained or lost, as represented by the companies reported 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.

Deloitte was the top firm for Large Accelerated Filer wins in 2019 (for the third year in a row) with 13 net SEC audit clients. Grant Thornton and Eide Bailly netted two and one new Large Accelerated Filers, respectively.

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. Companies identifying as an Accelerated Filer + Smaller Reporting Company are included in the analysis for Accelerated Filers, as these companies remain subject to the requirements that apply to Accelerated Filers, including a required auditor’s attestation of management’s assessment of internal control over financial reporting.

Deloitte also led the way among Accelerated Filer wins, with 12 new SEC audit clients and 5 departures, for a net of 7 SEC audit clients in 2019.

In total, there were 82 wins among Accelerated Filers in 2019.

The last table presents the top gains and losses for Smaller Reporting Companies. Companies in this population are a combination of companies that did not identify as Large Accelerated Filers, Accelerated Filers, or Accelerated + Smaller Reporting Company. For a further disaggregated list by all separate filer statuses, please contact us.

Prager Metis, with a net of 19 new SEC audit clients, was the top firm among Non-Accelerated Filers and Smaller Reporting Companies. As mentioned, the merger between Prager Metis and AMC Auditing in February 2019 contributed substantially to the 26 wins for Prager Metis.

Boyle CPA came in second for Non-Accelerated Filers and Smaller Reporting Companies in 2019, with a net of 13 new SEC clients.

In total, there were 428 wins among Non-Accelerated Filers and Smaller Reporting Companies in 2019.

This analysis was created using the Auditor Change database, powered by Audit Analytics. Audit Analytics tracks audit fees, restatements, and a wide range of audit and regulatory disclosures, with the ability to create daily email alerts for new disclosures by industry, auditor, and location.

To learn more about the Auditor Change database, or for subscription information,
please contact us.