Marcum continued to lead the way for auditor changes this quarter, gaining a net of 42 engagements in Q4 2022. Marcum continues to reap the benefits of its September 1 merger, gaining 43 new clients from Friedman in Q4.
Overall, the Big 4 and global & national firms gained 71 and lost 29 clients during Q4 2022. Compared to the previous quarter, engagements remained the same while departures decreased significantly for these top firms.
The table below presents a complete view of the gains and losses of the major global and national firms. It shows the number of SEC audit clients that each auditor gained or lost. Additionally, it shows the auditor from or to which the client was won or lost.
All of the Big 4 firms saw a net increase in clients this quarter, with the exception of KPMG who had three departures and no new engagements. Deloitte led the group with four gains and two losses, while both EY and PwC each gained two new clients and lost one.
Among the other eight global & national firms, Marcum saw the most gains, with 53 new clients and 11 losses. Grant Thornton gained a net of two new clients, while RSM and FORVIS both had a net of one new engagement. Moss Adams broke even, gaining and losing two clients in Q4.
BDO saw the most losses of the global & national firms, losing three clients with no new engagements. Crowe and EisnerAmper also gained no new clients this quarter but lost one client each.
Large Accelerated Filer Auditor Changes
In these tables below, we broke down the auditor changes by the size of companies gained or lost. These changes are 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.
Alpha & Omega Semiconductor Ltd was the only Large Accelerated Filer who changed auditors in Q4 2022. The company appointed Baker Tilly in October, replacing BDO as their external auditor.
Accelerated Filer Auditor Changes
The next table shows the wins and losses for Accelerated Filers. Accelerated Filers are companies with a public float between $75 million and $700 million. Companies that identify as an Accelerated Filer + Smaller Reporting Company are subject to Accelerated Filer requirements. These requirements include an auditor’s attestation of management’s assessment of internal control over financial reporting. As a result, we’ve included these companies in the analysis for Accelerated Filers.
Audit firms broke even this quarter among Accelerated Filer clients, both gaining and losing six clients overall.
Deloitte led this group, gaining two new Accelerated Filer clients in Q4. Four other firms each gained one client while another six firms each lost one. CohnReznick and BKM’s respective gain and loss are a result of the merger between the two firms that was completed in November 2022.
Non-Accelerated Filer and Smaller Reporting Company Auditor Changes
The last table shows the top gains and losses for Smaller Reporting Companies. This population includes companies that identified as a Non-Accelerated Filers, Smaller Reporting Company, or Non-Accelerated + Smaller Reporting Company. For a list that is divided by all separate filer statuses, please contact us.
Marcum gained the most clients filing as Non-Accelerated and Smaller Reporting Companies in Q4 2022 with a net total of 37 clients. Of their 48 engagements, 38 were a result of the Friedman merger. Assurance Dimensions and Victor Mokuolu tied for second with a net gain of seven clients.
Friedman lost a total of 40 Non-Accelerated and Smaller Reporting Company clients this quarter, 37 of which were due to their merger with Marcum. Liggett & Webb lost 14 clients followed by Boyle CPA who lost 12.
In total, there were 147 engagements and 172 departures for a net loss of 25 Non-Accelerated and Smaller Reporting Company clients this quarter.
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