Auditors of Broker-Dealers

Posted on January 6, 2022 by

Firms that are in the business of buying and selling securities, either for their own purposes or on behalf of their clients, are known as broker-dealers. To comply with rules set by the Securities and Exchange Commission, broker-dealers are generally required to have their financial statements audited by an independent accounting firm. The Audit Analytics database makes it easy to identify which accounting firms are providing these audits.

Auditor Market Share by Clients

In 2020, 314 audit firms competed for market share among 3,084 total broker-dealers. When looking at audit firms by number of clients, the Big Four audit firms held 16.6% of the broker-dealer market. EY took the top spot for the year with 151 clients, followed by PwC with 140 clients. Both Deloitte and KPMG served 111 broker-dealer clients in 2020. After the Big Four, other leading audit firms include Ohab & Company, Alvarez & Associates, RSM, and Withum. Together, the leading 20 audit firms accounted for 45.7% of the broker-dealer clients.

Additionally, we have the Auditor Market Share of Broker Dealers (2020) by total clients. Firstly, EY has 151 clients and 4.9% of the market share. Secondly, PwC has 140 clients and 4.5% of the market share. Thirdly, Deloitte has 111 clients and 3.6% of the market share. Fourthly, KPMG has 111 clients and 3.6% of the market share. Fifthly, Ohab & Company has 95 clients and 3.1% of the market share. Sixthly, Alvarez & Associates has 91 clients and 3.0% of the market share. Seventhly, RSM has 75 clients and 2.4% of the market share. Eighthly, WithumSmith + Brown has 70 clients and 2.3% of the market share. Ninthly, Brian W Anson CPA has 62 clients and 2.0% of the market share. Tenthly, Rubio CPA has 61 clients and 2.0% of the market share. Eleventhly, Citrin Cooperman & Company has 60 clients and 1.9% of the market share. Twelfthly, Spicer Jeffries has 58 clients and 1.9% of the market share. Thirteenthly, Ryan & Juraska has 46 clients and 1.5% of the market share. Fourteenthly, EisnerAmper has 44 clients and 1.4% of the market share. Fifteenthly, Berkower has 43 clients and 1.4% of the market share. Sixteenth, DeMarco Sciaccotta Wilkens & Dunleavy has 42 clients and 1.4% of the market share. Seventeenth, Michael Coglianese CPA has 39 clients and 1.3% of the market share. Eighteenth, Lerner & Sipkin CPA has 38 clients and 1.2% of the market share. Nineteenth, Moss Adams has 36 clients and 1.2% of the market share. Nineteenth, Goldman & Company has 35 clients and 1.1% of the market share.

Auditor Market Share by Net Capital

When looking at broker-dealers in terms of net capital, a slightly different group is seen among the top auditors. Broker-dealers must adhere to net capital requirements set by the Securities and Exchange Commission and are required to maintain a minimum net capital, which is determined by the size of the company. In general, a broker-dealer’s net capital for the year is a good indication of their size.

As one might expect, the Big Four auditing firms took the top four spots by net capital. PwC oversaw broker-dealers with the largest net capital sum, followed up by KPMG, Ernst & Young, and Deloitte & Touche. The next three, however, differed from the top auditors when measured by number of clients. This rearrangement in rankings could be explained by the focus of some accounting firms on serving a smaller number of larger clients. After the Big Four, EisnerAmper, RSM, Ryan & Juraska, and BDO served clients with the highest total sums of net capital. Overall, the top 20 audit firms handled a whopping 98.7% of broker-dealers by net capital.

Additionally, we have the Auditor Market Share of Broker Dealers (2020) by net capital. Firstly, PwC has a net capital of $107, 815. Secondly, KPMG has a net capital of $38,817. Thirdly, EY has a net capital of $34,760. Fourthly, Deloitte has a net capital of $29,588. Fifthly, EisnerAmper has a net capital of $3,334. Sixthly, RSM has a net capital of $2,845. Seventhly, Ryan & Juraska has a net capital of $1,010. Eighthly, BDO has a net capital of $816. Ninthly, Crowe has a net capital of $562. Tenthly, Mazars has a net capital of $414. Eleventhly, Citrin Cooperman & Company has a net capital of $398. Twelfthly, Keiter Stephens Hurst Gary & Shreaves has a net capital of $222. Thirteenthly, WithumSMith + Brown has a net capital of $212. Fourteenthly, Grant Thornton has a net capital of $120. Fifteenthly, Marcum has a net capital of $121. Sixteenth, Berkower has a net capital of $120. Seventeenth, Lerner & Sipkin has a net capital of $119. Eighteenth, Frankel & Starr has a net capital of $119. Nineteenth, Moss Adams has a net capital of $106. Nineteenth, Alvarez & Associates has a net capital of $98.

Interested in our content? Be sure to subscribe to receive our email notifications.