For fiscal year 2021, 11 accounting firms shared Germany’s audit market of the top companies comprising the DAX 40, MDAX 50, and SDAX 70 indexes trading on XETRA.
Unsurprisingly, the Big Four accounted for 88.7% of the market share for these largest companies. KPMG is the top firm, auditing 46 companies, followed by PwC with 43 clients, then EY and Deloitte with 33 and 19 clients, respectively. Seven other audit firms share the remaining 11.3% of the market; five firms each audit only one company.
In general, Germany’s audit market for XETRA-traded top companies in 2021 saw little change from 2020. In our previous audit market analysis, ten firms audited the top 160 companies. The ranking of those ten firms remained the same in 2021, with the addition of Baker Tilly auditing a single company.
The Big Four’s hold on the market remained relatively unchanged between 2020 and 2021. The firms experienced a few small shifts in the number of clients but not the overall ranking. KPMG lost one client, EY lost four, and Deloitte gained two. PwC remained steady with 43 companies. Fifth place BDO gained three new clients in 2021, while the rest of the smaller firms remained unchanged from 2020.
The Big Four firms exclusively audit the DAX 40. PwC took the lead in this market in 2021, auditing 37%. KPMG moved into second place, auditing 33% in 2021 compared to 38% in 2020.
EY and Deloitte stayed consistent with 25% and 5% of the market share, respectively.
The Big Four switched up their ranking in the MDAX 50 in 2021, with KPMG leading the way with 34%. EY is second with 24%, followed by PwC and Deloitte. PwC’s share of this market declined from 2020, dropping from 29% to 22% in 2021. Meanwhile, Deloitte saw a four-percentage point increase from 2020, putting them at 16% in 2021.
BDO joins the Big Four in this index, auditing two companies.
PwC holds the top spot in the market share among the next 70 companies on the SDAX index. The firm provides audit services to 17 companies or 25% of the market. Following close behind is KPMG, with 16 clients and 23% of the market share. EY lost four clients in 2020, dropping from 22% to 16% in 2021. Deloitte stayed consistent at 13%.
BDO increased its market share of the SDAX 70 to 10% in 2021, up from 6% the previous year. Nexia continues to audit 6%. Lastly, the remaining five firms audit the final 7% of the index.
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