In this analysis, we look at who audits Russell 3000 companies having $50 million to $1 billion in revenue.
There are currently 60 audit firms competing over 1,235 companies within this revenue range. Unsurprisingly, the Big Four audit the majority of these companies, collectively covering 63% of this market. EY tops the chart, auditing almost 21%, though Deloitte and KPMG are not far behind with market shares of 15.6% and 14.9%, respectively. PwC audits 143 of these companies, or 11.6%.
Grant Thornton leads the way for non-Big Four auditors, covering 8% of this market, with BDO USA following closely at 6.2%. Crowe and RSM each audit around 4%, while 52 other firms share the remaining 14.2%. These figures highlight the stark contrast in the amount of company engagements by the Big Four and non-Big Four firms.
As shown in the chart below, the highest concentration of audit firms competes for the smallest percentage of company market share, with 28 firms auditing one company each; this is 46.7% of the firms, yet only 0.9% of the total revenue in this population. Looking at the other end of the scale, only 6.7% of firms are auditing at least 100 companies each. Interestingly, there are no firms auditing between 21-50 companies within this revenue range, again reiterating the polarity.
Connecting the dots, the Big Four are the only auditors with more than 100 clients each and cover nearly three-fourths of the revenue within this population.
The chart below displays the distribution of revenue for the companies in the population.
As the revenue range increases, the number of companies decreases. That said, companies with revenues between $50 million and $200 million make up the majority of this population, while companies with revenues between $950 million and $1 billion account for the smallest portion.
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