Its June 30! End of another month under lockdown. Here are some stats on auditor changes for this month. Folks as an FYI, just looked into big4 auditor changes. So either the appointed or dismissed auditor had to be a big4 firm. Big month for Deloitte with no loss and gain of 7 audit engagements.
Here are the changes from a dollar perspective. Deloitte won engagements worth $86 million [Thanks to GE!]. The dollar gain was computed by using the fees paid to the dismissed auditor. The new auditor is probably not going to be paid that much but still a good datapoint! KPMG lost engagement worth $83 million [Again, Thanks to GE!] and won engagements worth $2 million.
So the score for the month of June is as follows;
| Firm | Wins | Loss | Net |
|---|---|---|---|
| Deloitte | 7 | 0 | 7 |
| PwC | 4 | 2 | 2 |
| EY | 6 | 12 | -6 |
| KPMG | 2 | 4 | -2 |
| Firm (in $’000) | Wins | Loss | Net |
|---|---|---|---|
| Deloitte | 86,192 | – | 86,192 |
| PwC | 2,203 | (6,860) | (4,657) |
| EY | 8,506 | (10,823) | (2,317) |
| KPMG | 1,928 | (82,534) | (80,606) |
I know some of my enthusiasts would like to see the data behind these numbers. Sure folks! that’s what this blog is all about. Openness and analytics! If you want the excel file for this calculation, drop a note in the comment section. Plus, if I missed any changes let me know!
| Company | Previous Auditor | New Auditor | Total Fee Previous Auditor (‘000) $ |
|---|---|---|---|
| Tetra Technologies Inc. | EY | GT | 1,238 |
| CSI Compressco LP | EY | GT | – |
| Marinus Pharmaceuticals | KPMG | EY | 650 |
| Bristow Group Inc. | GT | KPMG | 1,024 |
| Transworld Entertainment Corp | KPMG | Fruci & Co. | 926 |
| Open Lending Corp | Withum | EY | – |
| Office Properties Income Trust | EY | Deloitte | 1,044 |
| Diversified Healthcare Trust | EY | Deloitte | 1,512 |
| Service Properties Trust | EY | Deloitte | 2,261 |
| RMR Group Inc. | EY | Deloitte | 749 |
| Industrial Logistics Properties Trust | EY | Deloitte | 1,080 |
| Tremont Mortgage Trust | EY | Deloitte | 446 |
| Menlo Therapeutics Inc. | Kesselman | PwC | 335 |
| Urogen Pharma Ltd. | Kesselman | PwC | 571 |
| Priority Technology Holdings Inc. | RSM | EY | 777 |
| Nikola Corp | RSM | EY | – |
| Riviera Resources Inc. | KPMG | BDO | 1,858 |
| Circor International Inc. | PwC | EY | 6,611 |
| Plymouth Industrial REIT | Marcum | PwC | 867 |
| Barings BDC Inc. | EY | KPMG | 904 |
| Uranium Energy Corp. | EY | PwC | 430 |
| Histogen Inc. | EY | Mayer Hoffman | 502 |
| Houston Wire & Cable Co. | EY | BKD LLP | 657 |
| BRT Apartments Corp | BDO | EY | 468 |
| Comstock Holding Companies Inc. | BDO | GT | 363 |
| GE Inc. | KPMG | Deloitte | 79,100 |
| Nexpoint Capital Inc. | PwC | RSM | 249 |
You’ll notice that EY lost a bunch of REIT clients. It’s all part of the RMR group Inc. Would be interesting to know why they switched. Also, Credit Suisse in Switzerland switched from KPMG to PwC as part of auditor rotation and filed with SEC the change this month. It was 64 million CHF in audit fees or $67 million USD. Would guess there are some Credit Suisse funds in the US which would have a new auditor this year! Did not include that change in this table since we don’t know the impact to the US firm. There will be a blog post soon on International auditor changes. Europe would be fun to watch here.
