Day: May 28, 2021

5/28/21 – Auditor Changes

by enthusiastAuditor changes

Few notable changes between the weeks of 5/1 to 5/28. Deloitte lost 3 audit clients while gaining 2 audit clients. PwC had a net zero change by gaining and losing 2 audit clients. Below is the list of all changes that occurred in the past 4 weeks.

CompanyOld AuditorNew Auditor
Enova International, Inc.PwCDeloitte
Schmitt Industries Inc.Moss Adams–
Token Communities Ltd.AJ RobbinsGries & Associates
Biostage, Inc.RSM–
E2open Parent Holdings, Inc.WithumEY
Royale Energy, Inc.–Weaver & Tidwell
Alpha Investment Inc.–Sadler Gibb
Barrel Energy Inc.FruciRBSM
Phoenix Rising Companies, Inc.KCCWJ&S Associate
Max Sound CorpAJ RobbinsGries & Associates
TGS International Ltd.Moore StephensMSPC
ZHRH CorpKLJ & Assoc.BF Borgers
Genesys Industries, Inc.Michael GillespieBF Borgers
Royale Energy, Inc.Moss Adams–
Sharing Economy International Inc.Audit AllianceBF Borgers
Muscle Maker, Inc.MarcumBenjamin & Co.
Investview, Inc.MaloneBaileyM&K CPAs
Teligent, Inc.DeloitteGrassi & Co.
12 Retech CorpDBBMBF Borgers
Alterola Biotech Inc.AJ RobbinsGries & Associates
New Century Resources CorpAJ RobbinsGries & Associates
Pineapple Inc.Macias GiniBF Borgers
Yummies IncAJ RobbinsGries & Associates
Adhera Therapeutics, Inc.Baker TillySalberg & Co.
Velocity Financial, Inc.KPMGRSM
Star Alliance International Corp.AJ RobbinsGries & Associates
Assisted 4 Living IncPinnacleDaszkal
Tilray, Inc.DeloittePwC
American Acquisition Opportunity Inc.MarcumBF Borgers
Clene Inc.PwCDeloitte
Fisker Inc.DeloittePwC
Blue Owl Capital Inc.WithumKPMG
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Deloitte Australia Clients

by enthusiastDeloitte

Deloitte Australia is led by Adam Powick. For FY21, Deloitte recorded a revenue of AUD 2.31 billion vs. AUD 2.45 billion in FY20. Certainly the pandemic has taken a toll on the business leading to a 2% decline in revenues. However, Deloitte’s annual report mentions that profitability improved by 8%.

The break-out of Deloitte’s revenues across the various service lines are as follows:

Below is an interesting data point on Deloitte’s revenues in Australia. Audit revenues grew mid single-digits over the past 5 years. Majority of the growth was attributed to non-audit services to non-audit clients which grew on an average 15% y-o-y.

Deloitte has 9,550 employees in Australia of which 900 are partners. There are 281 women partners (31%) of the total 900 partners.

Looking at Deloitte’s audit clients, among companies in the ASX 200 Index, Deloitte leads other big4 firms in the utilities sector. Refer to the earlier posts on the distribution of audit clients among the other three firms.

Top 25 Deloitte audit clients in the order of the clients market capitalization are as follows:

CompanySector
Woolworths Group LtdConsumer Staples
APA GroupUtilities
Northern Star Resources LtdMaterials
AGL Energy LtdUtilities
Cimic Group LtdIndustrials
Oil Search LtdEnergy
Seven Group Holdings LtdIndustrials
Domino's PIZZA Enterprises LtdConsumer Discretionary
Idp Education LtdConsumer Discretionary
JB Hi-Fi LtdConsumer Discretionary
Incitec Pivot LtdMaterials
Spark Infrastructure GroupUtilities
Shopping Centres Australasia Property GroupReal Estate
Cromwell Property GroupReal Estate
CSR LtdMaterials
Iress LtdInformation Technology
Netwealth Group LtdFinancials
AP Eagers LtdConsumer Discretionary
Bingo Industries LtdIndustrials
IPH LtdIndustrials
Sims LtdMaterials
Webjet LtdConsumer Discretionary
Blackmores LtdConsumer Staples
EML Payments LtdInformation Technology
Austal LtdIndustrials
Deloitte clients

Check out the link if you want to read Deloitte’s annual report. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.

Do read the other blog posts.

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KPMG Australia Clients

by enthusiastKPMG

KPMG Australia is led by its CEO Andrew Yates who took over in July, 2021. KPMG Revenues were 1.9 billion AUD up 7% when compared with FY 19. Audit, Assurance & Risk Consulting (AARC) revenues was up 9%, Deals, Tax & Legal was up 8.1%, Enterprise was up 5.8%, Management Consulting was up 4.6%, and KPMG Strategy was up 13.5%.

The break-out of KPMG’s revenues across the various service lines are as follows.

KPMG’s non-audit services to non-audit clients increased on an average by 12% each year over the past 5 years. Audit services increased on an average by 5% while non-audit services to audit clients has remained fairly consistent.

Number of KPMG partners in the audit practice declined by 2% each year over the past 5 years. The audit staff personnel has remained consistent over the past five years. There was a 20% increase in 2016 followed by a 9% and 5% decline in 2018 and 2019.

KPMG audits 40 of the 200 Companies in the ASX200 Index, a healthy 20% audit market share. Among companies in the ASX 200 Index, KPMG leads other big4 firms in the materials sectors. Of the 37 Materials Companies in ASX 200, KPMG audits 11 of them. Refer to the other posts on the distribution of ASX 200 clients among the other three big4 firms.

Top 25 KPMG audit clients in the order of the clients market capitalization are as follows:

CompanySector
BHP Group LtdMaterials
Australia and New Zealand Banking Group LtdFinancials
RIO Tinto LtdMaterials
Goodman GroupReal Estate
Insurance Australia Group LtdFinancials
Sydney AirportIndustrials
Cochlear LtdHealth Care
Suncorp Group LtdFinancials
SOUTH32 LtdMaterials
Lendlease GroupReal Estate
Resmed IncHealth Care
Orica LtdMaterials
Treasury Wine Estates LtdConsumer Staples
Ausnet Services LtdUtilities
Wisetech Global LtdInformation Technology
Caltex Australia LtdEnergy
Qantas Airways LtdIndustrials
Ansell LtdHealth Care
Boral LtdMaterials
Appen LtdInformation Technology
OZ Minerals LtdMaterials
Chorus Ltd
Steadfast Group LtdFinancials
Regis Resources LtdMaterials
Downer Edi LtdIndustrials

Check out the link if you want to read KPMG Audit Transparency Report. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.

Do read our other blog posts

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PwC Australia Clients

by enthusiastPwC

For FY20, PwC recorded a revenue of AUD 2.6 billion. The headline revenue number remained unchanged from FY19. Big surprise was that Assurance service delivered a growth of 6% while Consulting and Financial Advisory were down 4% and 2% respectively.

The break-out of PwC’s revenues across the various service lines are as follows.

PwC had a 6% growth in their audit practice on a year-over-year basis for the last five years. However, the pandemic in 2020 led to a decline in non-audit revenues from non-audit clients. Non-audit revenues from non-audit clients fell 3% from AUD 1.94 billion to AUD 1.88 billion.

PwC retention rates increased across the board. Manager retention increased from 72% in FY19 to 79% in FY20. Senior Associates retention jumped from 67% to 77% while Associate retention jumped from 83% to 89%. Surely the pandemic increased retention! Consequently, Partner to Manager and Partner to Director ratio also improved.

PwC audits 40 of the 200 Companies in the ASX200 Index, a healthy 29% audit market share. Among companies in the ASX 200 Index, PwC leads other big4 firms in the financials, industrial, and real estate sectors. Refer to the earlier post on the distribution of ASX 200 clients among the other three big4 firms.

Top 25 PwC clients in the order of their market cap are as follows:

CompanySector
Commonwealth Bank of AustraliaFinancials
Westpac Banking CorporationFinancials
Fortescue Metals Group LtdMaterials
Transurban GroupIndustrials
Macquarie Group LtdFinancials
Brambles LtdIndustrials
ASX LtdFinancials
Aristocrat Leisure LtdConsumer Discretionary
Fisher & Paykel Healthcare Corporation LtdHealth Care
Amcor PlcMaterials
Sonic Healthcare LtdHealth Care
QBE Insurance Group LtdFinancials
Evolution Mining LtdMaterials
DexusReal Estate
Aurizon Holdings LtdIndustrials
Mirvac GroupReal Estate
StocklandReal Estate
GPT GroupReal Estate
Medibank Private LtdFinancials
TPG Telecom LtdTelecommunication Services
Computershare LtdInformation Technology
Seek LtdCommunication Services
Atlas ArteriaIndustrials
QUBE Holdings LtdIndustrials
Altium LtdInformation Technology

Check out the link if you want to read PwC Audit Transparency Report. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.

Do read into the our blog posts.

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EY Australia Clients

by enthusiastEY

EY Australia revenues were AUD 2.13 billion in FY20 which is an increase of 13% from revenues of AUD 1.89 billion. Audit revenues specifically increased by 7%. The below chart shows the growth of EY’s revenues over the past five years. Around 75% of EY’s revenues come from non-audit services performed for non-audit services. The remaining 25% are from audit and non-audit services to audit clients.

Of the 200 Companies in the ASX200 Index EY audits 60 of them. That is a 31% audit market share. EY leads in the number of audit clients among the top 200 companies in Australia. EY has a leading number of clients in the Communication services, Consumer discretionary, Consumer staples, Energy, Healthcare, Information Technology, and Telecommunication services sector. See below for a break-up of EY’s audit clients among the various sectors:

Top 25 EY audit clients in the order of the clients market capitalization are as follows:

CompanySector
CSL LtdHealth Care
National Australia Bank LtdFinancials
Wesfarmers LtdConsumer Discretionary
Telstra Corporation LtdTelecommunication Services
Newcrest Mining LtdMaterials
Woodside Petroleum LtdEnergy
Coles Group LtdConsumer Staples
Ramsay Health Care LtdHealth Care
REA Group LtdCommunication Services
The a2 Milk Company LtdConsumer Staples
Afterpay LtdInformation Technology
Xero LtdInformation Technology
James Hardie Industries PlcMaterials
Santos LtdEnergy
Scentre GroupReal Estate
Origin Energy LtdEnergy
Magellan Financial Group LtdFinancials
Tabcorp Holdings LtdConsumer Discretionary
Crown Resorts LtdConsumer Discretionary
Coca-Cola Amatil LtdConsumer Staples
Vicinity CentresReal Estate
AMP LtdFinancials
Bluescope Steel LtdMaterials
Worley LtdEnergy
Harvey Norman Holdings LtdConsumer Discretionary

Check out the link if you want to read EY’s latest Audit Transparency report. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.

Do read our other blog posts

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Top Australian Companies and their auditors

by enthusiastDeloitte / EY / KPMG / PwC

Focusing our attention to Australia. We previously looked into the S&P 500 US auditors. We also examined FTSE 350 UK auditors in our previous posts.

Audit market share

ASX200 Index has the 200 largest companies in Australia by float adjusted market capitalization. We’ll now look at these 200 Companies to identify their auditors. EY leads with 60 audit clients followed by PwC with 57 clients. KPMG comes in third with 41 clients and Deloitte with 29 clients. Non big-4 firms collectively audit 11 companies.

Audit market share by sectors

Next looking at the break-down of the 200 companies by the various sectors and their auditors. All big-4 firms have share in all sectors except for utilities where Deloitte audits 3 of the 4 clients.

Big4 revenues

The revenues of the big4 audit firms across five years are provided below. PwC leads in total revenues followed by Deloitte, EY, and KPMG. PwC revenues for 2020 was AUD 2.6 billion while KPMG revenues for 2020 was AUD 1.9 billion. A difference of AUD 700 million between the top and last ranked firm.

Audit revenues of big4 firms

Looking at just the audit revenues for the big4 firms for FY20, PwC brings in audit fees of AUD 475 million. EY follows with AUD 417 million. KPMG brings in AUD 363 million. Deloitte brings in AUD 305 million.

Audit Revenue (AUD millions)PwCEYKPMGDeloitte
2020475417363305
2019443390356288
Growth7%7%2%6%

ASIC Inspection firms

Looking into the Audit Inspection reports by ASIC (Australian Securities & Investments Commission) for FY20, EY has the least number of findings among the big4 firms. Only 14% of the areas reviewed for EY had findings while 35% of the areas reviewed for Deloitte had findings. Based on review of 55 financial reports of listed and public interest entities audited by EY, only 2 entities made material changes to their financial statements. The findings for other big4 firms are summarized in the table below.

Audit FirmsDeloitteKPMGPwCEY
Key audit areas reviewed26393535
Findings identified91085
2020 (%)35%26%12%14%
2019 (%)32%33%18%22%
Financial reports reviewed45473655
Material changes based on inquiries4121
(%)9%2%6%2%

The link to the reports for Deloitte, KPMG, EY, and PwC is provided in this link.

Look into our blog posts for additional information on the audit clients for the big4 firms:

Deloitte Australia clients

KPMG Australia clients

EY Australia clients

PwC Australia clients

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