Professional Services Monitor: Today

 

June 17, 2010

FY2009 Audit Fees Updated

In April, we took a preliminary look at FY2009 audit fees, based on the the proxy statements processed at the time.  We have updated this analysis with an additional 1,500 filers, bringing the total to 3,636 proxies tracked between January 1 and June 15, 2010.

The preliminary analysis showed PricewaterhouseCoopers with a small increase in total fees.  Now, PwC has a change of -0.8%, with KPMG next among at the Big Four at -2.8%.  Among the top ten firms by total fees, only ParenteBeard had positive growth at 6.1%.

(more…)

April 20, 2010

Preliminary FY2009 Audit Fees

Filed under: ARGI,Audit Fees,News — psmtoday @ 5:04 pm

Between January 1 and April 15, 2010, we have processed 2,322 DEF-14A proxy statements, the primary form on which US public companies disclose fees paid to their auditors.  While this is by no means a complete set of data on FY2009, it does represent about 40% of what should be eventually filed.  All analysis below is based upon that set of 2,322 filers.  We will update again in two months when most of the rest of FY2009 should be filed.

Emblematic of the overall economic climate, of the 10 firms with largest aggregate fees only PricewaterhouseCoopers experienced positive growth (1.9%) between FY2009 and FY2008.  Next closest was Grant Thornton at -2.1%.  Again, this is from among the 2,322 filers noted above.

Rank Auditor Clients FY2009 FY2008 Change
1 PricewaterhouseCoopers 375 $2,271,811,789 $2,227,815,201 1.9%
2 Ernst & Young 519 $1,545,044,911 $1,615,883,337 -4.6%
3 Deloitte 338 $1,345,466,037 $1,449,723,665 -7.7%
4 KPMG 364 $1,154,240,231 $1,182,562,186 -2.5%
5 Grant Thornton 114 $81,429,078 $83,163,732 -2.1%
6 BDO Seidman 64 $52,277,852 $54,521,828 -4.3%
7 Crowe Horwath 63 $20,672,469 $21,320,724 -3.1%
8 McGladrey & Pullen 38 $13,620,403 $14,690,576 -7.9%
9 Moss Adams 20 $9,114,058 $9,615,475 -5.5%
10 ParenteBeard 36 $8,471,851 $8,003,648 5.5%
All Others 391 $86,596,459 $88,549,838 -2.3%
2,322 $6,588,745,138 $6,755,850,210 -2.5%

The 25 largest filers by total fees between 1/1/2010 and 4/15/2010 had an average growth of about 4%.  AIG’s $193 million paid to PricewaterhouseCoopers is the largest total we have tracked, eclipsing the $156 million General Motors paid to Deloitte for FY2002.  AIG’s proxy included the explanatory sentence, “The 2009 increase in audit and audit-related fees was primarily related to nonrecurring divestiture and restructuring activities related to AIA, ALICO and Nan Shan and other separate reporting requirements related to the Company’s restructuring activities.”

Rank Company Auditor (FY09) Total Fees Change
1 American International Group Inc. PricewaterhouseCoopers $193.6 Mil. 32.3%
2 Bank of America Corp. PricewaterhouseCoopers $128 Mil. 34.8%
3 General Electric Co. KPMG $110.1 Mil. -20.8%
4 Goldman Sachs Group Inc. PricewaterhouseCoopers $106.9 Mil. 6.5%
5 Citigroup Inc. KPMG $95.9 Mil. -0.2%
6 JP Morgan Chase & Co. PricewaterhouseCoopers $95.8 Mil. -12.4%
7 Morgan Stanley Deloitte $70.7 Mil. 14.6%
8 International Business Machines PricewaterhouseCoopers $66.3 Mil. -8.1%
9 Merck & Co. PricewaterhouseCoopers $55.7 Mil. 49.7%
10 Hewlett Packard Co. Ernst & Young $53.8 Mil. 9.7%
11 MetLife Inc. Deloitte $51.2 Mil. 3.3%
12 Ford Motor Co. PricewaterhouseCoopers $51.2 Mil. -11.5%
13 Wells Fargo & Co. KPMG $50.2 Mil. 48.9%
14 United Technologies Corp. PricewaterhouseCoopers $46.9 Mil. 3.5%
15 Prudential Financial Inc. PricewaterhouseCoopers $45.1 Mil. 8.9%
16 Dow Chemical Co. Deloitte $44.1 Mil. 15.6%
17 Tyco International Ltd. Deloitte $39.9 Mil. -36.1%
18 Pfizer Inc. KPMG $37.4 Mil. 25.7%
19 Verizon Communications Inc. Ernst & Young $36 Mil. 0.0%
20 Thomson Reuters Corp. PricewaterhouseCoopers $34.8 Mil. -13.5%
21 Johnson & Johnson PricewaterhouseCoopers $34.1 Mil. -13.0%
22 Honeywell International Inc. PricewaterhouseCoopers $34 Mil. -3.8%
23 Exxon Mobil Corp. PricewaterhouseCoopers $33.5 Mil. -4.2%
24 Coca Cola Co. Ernst & Young $33 Mil. -5.6%
25 AT & T Inc. Ernst & Young $31.2 Mil. -1.9%

The SEC requires companies to disclose fees paid to their auditors in four categories–audit, audit-related, tax and other.  Audit represented 79.3% of the total in this segment, and the overall distribution is essentially unchanged between FY2009 and FY2008.

November 18, 2009

Auditor Market Share Lists: A Tale of Three Cities

In another look at audit marketshare, below are the total FY2008 fees, average FY2008 fees per client, and number of clients in three cities—Chicago, Denver and Seattle—based on the city from which the firm is serving a client. That is, the data is grouped on the office of the firm signing off on the client’s financials. This is often the same city as the client’s headquarters, but not always. The data is taken from Ames Research Group’s audit fees database, sourced primarily from DEF-14A proxy statements.

More lists are available on our Auditor Marketshare page.

Fees are listed in $US millions.

Chicago

Firm Total Avg Clients
Deloitte $198.5 $5.7 35
Ernst & Young $128.4 $2.7 47
PricewaterhouseCoopers $101.9 $4.2 24
KPMG $90.3 $3.0 30
Grant Thornton $9.8 $0.8 12
BDO Seidman $6.7 $0.6 12
Blackman Kallick Bartelstein $1.1 $0.4 3
McGladrey & Pullen $0.4 $0.2 2
Plante & Moran $0.3 $0.3 1
Crowe Horwath $0.2 $0.2 1
Virchow Krause & Co. $0.1 $0.1 1
Wipfli $0.1 $0.1 1

Seattle

Firm Total Avg Clients
Deloitte $51.1 $3.6 14
KPMG $39.3 $2.1 19
Ernst & Young $26.8 $3.0 9
PricewaterhouseCoopers $7.8 $1.0 8
Grant Thornton $1.8 $0.5 4
Moss Adams $1.5 $0.4 4
Peterson Sullivan $0.8 $0.2 5
Schwartz Levitsky Feldman $0.3 $0.3 1
McGladrey & Pullen $0.3 $0.3 1

Denver

Firm Total Avg Clients
KPMG $55.2 $3.1 18
Ernst & Young $45.9 $2.7 17
PricewaterhouseCoopers $26.2 $2.9 9
Deloitte $13.7 $1.2 11
Ehrhardt Keefe Steiner Hottman $5.8 $0.3 17
Grant Thornton $4.2 $0.5 8
Hein & Assoc. $2.8 $0.3 11
GHP Horwath $1.2 $0.2 5
BKD $1.0 $1.0 1
Crowe Horwath $0.6 $0.6 1
Causey Demgen & Moore $0.4 $0.2 2
Eide Bailly $0.3 $0.3 1
McGladrey & Pullen $0.1 $0.1 1
Gordon Hughes & Banks $0.1 $0.1 2
Stark Winter Schenkein & Co. $0.1 $0.1 1

July 17, 2009

Auditor Market Share Lists: DoD Contractors

Filed under: ARGI,Deloitte,Firms,KPMG,PricewaterhouseCoopers — psmtoday @ 2:30 pm

This afternoon, we have posted a new list to our Audit Market Share list section, a list of the Department of Defense’s largest contract recipients for FY2008.  We have followed this list for 15 years, and this is the first time we can recall that any of the Big 6/5/4 have appeared in the top 100.  Furthermore, BearingPoint received nearly $750 million in defense contracts, some of which will presumably go to Deloitte and PwC in Fy2009, all other things remaining equal.

(more…)

July 1, 2009

2009 Big Four Annual Report Now Available

Filed under: ARGI,News — psmtoday @ 4:26 pm

Our 2009 Big Four Annual Report is now available for immediate purchase and download. More information at www.amesrgi.com/products_annualreport.asp

May 20, 2009

More Audit Fees Lists

Filed under: ARGI,Audit Fees,Firms,PricewaterhouseCoopers — psmtoday @ 9:47 am

We wrap up the March to April proxy statement busy season with three more lists of audit fees, as a follow-up to our earlier post. We again look at largest increases and decreases from FY2007 to FY2008, and we’ve added a third list of the 10 largest total audit fees.

These 30 companies were taken from about 2400 proxies filed during March and April, 2009. The average increase in this group was about 10.0%.

PricewaterhouseCoopers clients had an average increase of 8.9%. The three of the four largest audit fees-paid in FY2008 belong to PwC clients: JP Morgan Chase, Goldman Sachs Group and Bank of America. With the large acquisitions made by each of these three companies in the second half of 2008, one might expect that audit fees increases ought to be even larger in FY2009.  Net, audit fees increased for this group of PwC clients by about $6.5 million.

(more…)

April 8, 2009

Auditor Market Share Lists: Audit Fees Increase/Decrease

Filed under: ARGI,Firms,KPMG — psmtoday @ 12:47 pm

Two more lists have been added to our Auditor Market Share Lists.  These lists provide the 10 companies with the largest increases and decreases in total audit fees, among proxy filers in March 2009.

These 20 companies were taken from more than 1000 proxies filed during March.  The average increase in this group was about 6.1%.

KPMG clients, for one, have an average increase of 10.9%.  Boise Inc., a KPMG client, had the largest increase in fees at more than 1500% between FY2007 and FY2008, although McGladrey was Boise’s auditor for FY07.  Furthermore, as Hoovers.com notes, Boise Inc. “was formed in 2008 when Aldabra 2 Acquisition Corp. purchased the paper and packaging assets of Boise Cascade.”  Synovus Financial was the KPMG client with the largest decrease, -60%.

(more…)

March 30, 2009

OpenID Now Supported for Commenters

Filed under: ARGI — psmtoday @ 10:04 am

OpenID, a login framework “eliminates the need for multiple usernames across different websites,” is now supported on amesrgi.com for commenters.

openid

OpenID allows users to login with a GMail, Yahoo, WordPress.com, or Blogger account, among others.

March 27, 2009

Auditor Lists: Long Distance (Audit) Relationships

Filed under: ARGI,News — psmtoday @ 2:21 pm

We’ve posted a new, somewhat superfluous, list to our Auditor Market Share Lists.  We look at 30 companies with long-distance audit relationships.  That is, the auditor’s office noted on the audit opinion is some distance from the company’s registered headquarters address.

(more…)

February 18, 2009

Auditor Market Share Lists: Largest Private Companies and Top Japanese Companies

Filed under: ARGI,News — psmtoday @ 9:19 am

We’ve posted two new lists to our Auditor Market Share Lists.  First, we look at the 10 largest private companies from Forbes’ Top Private Companies list.  Second, we look at the change in PricewaterhouseCooper’s Japanese market share, following the turmoil with its Japanese affiliate firms, through the firm’s share in 2008 vs. 2009 of the Financial Times Japanese 500 list.

(more…)

Next Page »