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%.

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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.

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March 24, 2009

Deloitte & PwC Purchase Business Units from BearingPoint

Filed under: Consulting,Deloitte,Firms,PricewaterhouseCoopers — psmtoday @ 5:16 pm

Deloitte and PricewaterhouseCoopers separately announce their purchases of business units BearingPoint in North America.

Deloitte will “acquire substantially all of the assets” of BearingPoint’s Public Services practice.

Deloitte today announced that it has signed an asset purchase agreement to acquire substantially all of the assets of the North American Public Services practice of BearingPoint out of bankruptcy for total consideration of $350 million in cash and the assumption of certain BearingPoint liabilities. BearingPoint is a global management and technology consulting company that filed for Chapter 11 bankruptcy protection on February 18, 2009. The agreement is subject to approval by the bankruptcy court, which may consider competing bids, and there can be no assurance that the purchase will be consummated.

PwC announced its own acquisition of BearingPoint’s North American Commercial Services practice.

he United States firm of PricewaterhouseCoopers LLP (PwC) today announced that it has reached an agreement in principle with BearingPoint, Inc. to acquire portions of BearingPoint’s North American Commercial Services practice, which includes its financial services segment. At the same time, PwC Advisory Co., Ltd. (PwC Japan), a PricewaterhouseCoopers firm operating in Japan, has reached an agreement in principle to acquire and integrate with BearingPoint’s entire Japan practice consulting business, which has a leading position in the business consulting market.

In the United States, the proposed transaction will integrate selected contracts and assets of BearingPoint into PwC’s Advisory practice, while bringing to the firm client service professionals with significant business and consulting expertise in industries including energy, utilities, insurance, pharmaceuticals and life sciences.

In Japan, the strength of BearingPoint’s business means that this transaction will create a combined team of over 1,500 professionals which will be one of the largest advisory practices in the Japanese market.

The Washington Post reported that PwC will pay $25 million for the unit.

In BearingPoint’s Fy2007 Annual Report, Public Services and Commercial Services comprise two of BearingPoints three principal North American units, with Financial Services being the third.  Public Services generate $263 million in gross profit in Fy2007, and Commercial Services $82 million.

March 5, 2009

Deloitte Issues Going Concern Opinion on General Motors

Filed under: Deloitte,Firms,SOX 404 — psmtoday @ 10:40 am

In GM’s 2008 10-K, filed this morning, Deloitte’s audit opinion contained a “going concern” clause:

The accompanying consolidated financial statements for the year ended December 31, 2008, have been prepared assuming that the Corporation will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. Management’s plans concerning these matters are also discussed in Note 2 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Furthermore, Deloitte’s 404 opinion on internal controls states that GM did not maintain effective internal controls due to a “material weakness related to ineffective controls over the period-end financial reporting…”
GM Auditors Raise Warning On Bankruptcy Risk : NPR

Although GM has warned for weeks that its cash-flow position was being eroded, Thursday’s announcement in an annual report filed with the U.S. Securities and Exchange Commission shows the full gravity of the situation as auto sales plummet to their lowest levels in more than a quarter century and revenue continues to drop sharply.

GM has already taken $13.4 billion in government loans, but the company has been unable to cut costs fast enough to stop the bleeding. Executives say they need another $16 billion to survive.

July 23, 2008

Deloitte Releases Global Revenues for FY2008

Filed under: Deloitte,Firms — psmtoday @ 12:56 pm

Via CFO.com

Deloitte Touche Tohmatsu announced Tuesday that its annual revenues were $27.4 billion, the sixth consecutive year the Big Four firm’s revenues have grown by a double-digit percentage.

The accounting firm said those results, aggregated from all its member firms for fiscal year 2008, represented a year-over-year increase of 18.6 percent. The firm also said it had added 15,000 employees to its ranks, for a total of 165,000 employees worldwide.

The largest single share of Deloitte’s revenue comes from its audit business, which grew 14.8 percent to $12.7 billion. The firm said its financial advisory services grew even faster, at 26.6 percent, to $2.4 billion, followed by consulting services, which grew 22.2 percent to $6.3 billion. Tax and legal services grew 20.4 percent to $6.0 billion.

Deloitte is the first of the Big Four to release FY2008 results.

March 6, 2008

Deloitte on the Front Page and in the Classroom

Filed under: Careers,Deloitte,Firms — psmtoday @ 8:19 am

The Wall Street Journal features a front-page story this morning on corporate efforts to provide and supplement curricula in schools, including Deloitte.

In a recent class at Abraham Clark High School in Roselle, N.J., business teacher Barbara Govahn distributed glossy classroom materials that invited students to think about what they want to be when they grow up. Eighteen career paths were profiled, including a writer, a magician, a town mayor — and five employees from accounting giant Deloitte LLP.
“Consider a career you may never have imagined,” the book suggests. “Working as a professional auditor.”

While some will undoubtedly criticize a commercial influence in schools, I feel Deloitte’s program as described is necessary and beneficial for all parties. After all, the bulk of corporate presence in schools is more likely to be marketing and sales–vending machines and the like– then educational materials, even if from a particular corporate viewpoint. In Deloitte’s case, they are not pulling out the best and brightest prospects immediately, leaving mysteriously empty desks across Advanced Placement classrooms. Instead, these sort of programs just provide some awareness of the profession and careers in it.

November 9, 2007

Deloitte Film Fest Finalists

Filed under: ARGI,Deloitte,Firms — psmtoday @ 4:59 pm

As a leading researcher on the Big Four professional service firms, it was the ARGI duty to carefully and objectively review the finalists of the Deloitte Film Fest. The process, as illustrated below, met the full rigor the Ames Standard for quality.

Review Process

The decision making was brutally tough, but some of the ARGI staff managed to pick the following videos as their winners.

Jennifer’s Pick, “Deloitte & You”


Christopher’s Pick, “Food For Thought”

“It reminds me of elementary school film strips. And turkey.” Honorable mention, The Green Dot


Pat’s Pick, “Beloit – Detroit – Deloitte”

September 12, 2007

Deloitte Film Fest

Filed under: Careers,Deloitte,Firms — psmtoday @ 3:16 pm

While E&Y is sponsoring a video contest on college campuses, Deloitte is featuring short films produced by its own staff, under the name “What’s Your Deloitte?”

Deloitte & Touche debuted a Deloitte Film Festival featuring short films submitted by teams of Deloitte employees from around the U.S.

Staffers were encouraged to make short YouTube-like films on the theme of “What’s Your Deloitte?” The firm posted the films on an intranet, where other staff members could rate them.

Unfortunately, it doesn’t appear that Deloitte will make the videos available to the general public.

Deloitte supplied the 370 teams who submitted entries with Panasonic Mini-DV cameras. The firm says that it will eventually donate the equipment to non-profits.

Both Deloitte’s internal contest and E&Y’s campus competition are aimed at the coveted Gen-Y talent pool, seeking to meet this generation where they are. While both firms have the media—video—and the method—viral, user-contributed—right, one hopes the content and presentation is high-quality and authentic.

Link: Deloitte Press Release

August 22, 2007

BusinessWeek: “Consulting Pays Off for Accountants Again”

On Monday, BusinessWeek published an article on the new face of the old consulting-services businesses at the Big Four. Specifically, the article discusses Deloitte Consulting and the serendipitous collapse of the deal to spin-off the consulting in March 2003. Since then, Deloitte has continued as the only of the Big Four to have a major consulting practice named as such. E&Y sold its consulting practice to Cap Gemini; KPMG spun-off its consulting business to become BearingPoint; and PwC sold its consulting division to IBM to become part of IBM Global Services. And in the luckiest break of all, Andersen Consulting completed its prolonged and painful departure from Arthur Andersen in August 2000 to become Accenture.
Deloitte bucked the trend by keeping Deloitte Consulting under the same roof. Not only did it retain the business, as the article details, Deloitte has made the consulting business even more integrated with the audit and tax practices.

At Deloitte, partners say consultants are far more intertwined with the rest of the business than ever before, starting with their wallets. The SEC outlawed the practice of paying auditors based on non-audit work. So now Deloitte has one big pool of profit that auditors, tax experts, and consultants all share. Audit partners can still refer business to their consulting counterparts, but they only benefit in a broad sense, no longer directly. “Teaming became our mantra,” says Salzberg. James Quigley, chief executive of the global firm, Deloitte Touche Tohmatsu, says the U.S. firm’s array of services makes it “a category of one.”

But, as the article continues, the rest of the Big Four might quibble with Quigley’s assertion of Deloitte’s singular station in consulting. “And it hasn’t taken long for the other audit firms to do the math, and quickly rebuild their own consulting arms. KPMG Worldwide last year sold $5.3 billion of consulting, a 12% jump from the year before; PricewaterhouseCoopers (PwC) $3.7 billion, up 20%; and Ernst & Young $2.4 billion, a 2% increase.” As a Deloitte consulting executive told me even three years ago, “I know the rest of the firms have consulting, even if they’re aren’t calling it that anymore, because they’re bidding against me for the same consulting work.”

Link: Consulting Pays Off for Accountants Again – BusinessWeek

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