Financial Director/Accountancy Age has a report and analysis on the top 50 firms by revenue in the UK. Not surprising, PwC, Deloitte, KPMG and E&Y take one through four, respectively, by a large margin. The article also notes that UK revenues have finally climbed back over pre-Enron levels. KPMG had the largest growth in fees at 20%, and each of the Big Four had at least double-digit growth.
June 29, 2006
June 28, 2006
Grant Thornton ranked an impressive fifth on ComputerWorld’s most recent survey of Best Places to Work in IT. ComputerWorld notes that GT allows its IT staff to choose the project teams and special assignments to which they are assigned. The magazine also has an interesting look at a day in the life of the GT IT organization.
June 16, 2006
March to May of each year is a busy time for those of us who track professional fees paid to auditors, as disclosed on public companies’s annual proxy statements. Beginning in February 2001, each US public company has been required to directly disclose to its shareholders how much is paid to the company’s independent auditors. The SEC requires companies to disclose total fees broken down into four categories: audit, audit-related, tax, and “all other fees.”
Among the Big Four, PricewaterhouseCoopers had the largest drop of 5.9%. Deloitte’s and KPMG’s total fees both dropped 3.1%. Ernst & Young gained just .2% in Fiscal 2005, but still stands out as the only Big Four firm without a loss. Remarkably, non-Big Four firms dropped as well, taken on the whole, by 3.3%.
For this analysis, ARGI included US public companies with a fiscal year end of after 11/1/2005. Data comes from DEF-14A proxy statements. Excluded from this group are companies with a different auditor between FY 2005 and 2004 and those where fiscal-year transition periods are included or where some other substantial ambiguity exists in the fees disclosure. The final population included more than 3500 companies. FY2004 fees total were as restated for FY2005, not as originally filed. For more information on ARGI’s audit fees database, please contact your firms national competitive intelligence unit.
Ernst & Young and Mitchell & Titus LLP announced today that M&T will be joining Ernst & Young Global Ltd. as a member firm.
A quick refresher: The Big Four operate as global alliance of member firms. There are many other US and global associations, such as PKF International
What appears to be happening is a marketing and brand move by both firms. Clearly, E&Y and M&T are not direct competitors. Furthermore, while Mitchell is registered with the PCAOB, the firm does not current audit any SEC registrants, according ARGI research. Thus, the firm is more focused on smaller or private companies. This alliance seems to open numerous new brand opportunities for both firms. “Mitchell & Titus, an Ernst & Young Global Member Firm” ought to be a very powerful proposition. On E&Y’s side, E&Y gains access to a segment of the market to which its specific brand is not best suited. This arrangement will be interesting to watch in the next two years.
June 13, 2006
Forbes is reporting this morning that PricewaterhouseCoopers has created a new firm in Japan, PricewaterhouseCoopers Arata. PwC Aarata will begin operations on July 1, which is also the date when existing PwC affiliate firm ChuoAoyama begins serving a two-month ban on auditing public Japanese companies. The penalty is a result of ChuoAoyama certifying the financial statements of Japanese cosmetic company Kanebo, which the company later admitted were falsified for several years.
June 12, 2006
The Ernst & Young Entrepreneur of The Year Awards Program casts a wide net in choosing local, national, and global winner. Began in 1986, E&Y now names individual winners in 26 cities, and 35 country awards outside of the US. Past winners include Jeff Bezos of Amazon and Howard Schultz of Starbucks.