Auditor Changes Roundup: Q1 2018

Heaton & Company, with a net of 18 new SEC audit clients, accounts for the most new SEC audit clients among all firms this quarter. Haynie & Company was not far behind with a net of 15 new SEC audit clients. All of Haynie & Company’s new clients and 15 of the 18 new SEC audit clients for Heaton & Company came from Haynie & Company’s acquisition of Pritchett, Siler & Hardy in January, as noted by Accounting Today.

Deloitte held the top spot among the major global and national firms in Q1 for the third year in a row with 11 new engagements and six departures for a net of five new SEC audit clients. RSM US, Crowe Horwath, EisnerAmper, and Ernst & Young also had a net increase in new SEC audit clients this quarter among the major global and national firms.

As seen in the matrix below, there were 52 new engagements and 60 departures during Q1, an increase in SEC-client auditor change activity among the major global and national firms compared to last quarter and the same period last 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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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, those with a worldwide public float of more than $700 million.

Ernst & Young and Deloitte tied with six new SEC audit client engagements among Large Accelerated Filers this quarter. Deloitte, however, led in overall net of new SEC audit clients.

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.

RSM US led the way for Accelerated Filers this quarter, with four new SEC audit clients.

Finally, the last table presents the top five gains and losses for Smaller Reporting Companies.

Heaton & Company and Haynie & Company were the top firms among the Smaller Reporting Company Filers, with a net of 18 and 15 new SEC audit clients, respectively. Both firms gained new clients from the Pritchett, Siler & Hardy acquisition, as previously mentioned.

Fruci & Associates II and BF Borgers CPA also had an increase in new SEC audit clients this quarter, netting six and five new clients each.

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