Prager Metis CPAs, with a net of 16 new SEC audit clients, accounts for the most new SEC audit clients among all firms in Q2 2019. The 18 engagements for Prager Metis CPAs in Q2 2019 was the highest of any firm. As noted in Accounting Today, the merger of Prager Metis and AMC Auditing contributed to the firm’s high volume of new SEC clients for the quarter. This is the second recent merger for Prager Metis that contributed to an increase in SEC audit clients for the firm following its Q4 2018 merger with Paritz & Company.
As seen in the matrix below, there were 54 new engagements and 72 departures during Q2 2019 among the major global and national firms. This is an increase in SEC-client auditor change activity from Q1 2019’s 48 engagements and 57 departures, and a slight decrease in activity from Q2 2018’s 56 engagements and 60 departures.
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 the image.)
Leading the way among the Big Four audit firms for the second quarter in a row, Deloitte netted nine new SEC audit clients in Q2 2019. This is the third year in a row that Deloitte netted the most new SEC audit clients in the second quarter of the year.
Among the other global & national audit firms, BDO USA and EY picked up numerous new SEC audit clients, with nine and eight new engagements, respectively. Marcum and Grant Thornton also had seven new engagements each during Q2 2019.
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.
For the second quarter in a row, Deloitte was the top firm for Large Accelerated Filers this quarter, netting five new SEC audit clients. No other firms had positive net engagements for Large Accelerated Filers in Q2 2019.
The next table presents the largest wins and losses for Accelerated Filers, which are companies with public float between $75 million and $700 million.
Deloitte also led the way among Accelerated Filers for the second quarter in a row, netting two new SEC audit clients. For Accelerated Filers, ten audit firms each netted one new client.
The last table presents a sample of the largest wins and losses for Non-Accelerated Filers and/or Smaller Reporting Companies. Note: Because the SEC allows companies to identify as both a Smaller Reporting Company and either an Accelerated or Non-Accelerated filer, the list below combines Smaller Reporting Companies with Non-Accelerated Filers.
Prager Metis CPAs, with a net of 16 new SEC audit clients, was the top firm among Non-Accelerated Filers and/or Smaller Reporting Companies. As mentioned previously, this increase can partly be attributed to its merger with AMC Auditing. The next closest firms are Haskell & White and Wipfli, each netting three new SEC audit clients in Q2 2019. Ten audit firms each netted two new clients.
In total, for Non-Accelerated Filers and/or Smaller Reporting Companies during Q2 2019, there were 121 engagements and 126 departures.
Audit Analytics tracks audit fees, auditor changes, 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, For more information on subscription pricing, call us at (508) 476-7007 or e-mail info@auditanalytics.com.