Relatively a quiet week with no major changes in auditors.
| Company | Old Auditor | New Auditor |
|---|---|---|
| Thunder Energies Corp | BF Borgers | Daszkal Bolton |
| Magna Lab Inc | RBSM | Michael T Studer |
| Franklin Wireless Corp | Haskell & White | Benjamin & Ko |
| Rocky Mountain High Brands | Prager Metis | M&K CPAs |
| Youngevity International Inc | Mayer Hoffman | – |
| Innocap Inc | Marcum | Baker Tilly |
| Software Acquisition Group Inc | EY | Marcum |
KPMG and PwC gains one audit each while Deloitte loses one client. Interesting fact is that the gains and losses are from and to non-big 4 firms.
| Company | Old Auditor | New Auditor |
|---|---|---|
| Strattec Security Corporation | Deloitte | Crowe LLP |
| BioNexus Gene Lab | Total Asia | JP Centurion |
| Daniels Corp. Advisory Co. Inc | Thayer O’Neal | TPS Thayer |
| iFresh Inc. | Friedman LLP | Wei, Wei LLP |
| Hyliion Holdings | Withum | GT |
| Trendmaker Inc. | Total Asia | JP Centurion |
| RenovaCare | Marcum | PKF O’Connor Davies |
| Monaker Group | Thayer O’Neal | TPS Thayer |
| Salamander Innisbrook | F&D | CohnReznick |
| DynaResource Inc | Whitley Penn | Armanino |
| Eagle Bancorp Inc | Dixon Hughes G | – |
| Velodyne Lidar | Withum | KPMG |
| Multiplan Corp | Marcum | PwC |
| Augmedix Inc. | REM | Frank Rimerman |
Let’s look at the Auditor changes for the current week. KPMG gained two audit clients in the current period. Adicet Bio switched from PwC to KPMG in the current week. Adicet paid PwC $1.8 million in audit fees in FY 2019. Fubo TV switched to KPMG from Soldinger. Fubo TV paid KPMG $1.4 million in audit fees for FY 21.
Deloitte lost 1 audit client while EY gained 1 in this week.
| Company | Old Auditor | New Auditor |
|---|---|---|
| Token Communities Ltd. | MJF & Associates | AJ Robbins |
| Loop Media Inc. | Prager | Marcum LLP |
| Jubilant Flame Int. Ltd. | Thayer O’Neal | TPS Thayer LLC |
| Leader Hill Corporation | Total Asia Assoc. | JP Centurion |
| Comstock Mining Inc. | Deloitte | DeCoria, Maichel |
| Conversion Labs Inc. | BF Borgers | Friedman LLP |
| PHI Group Inc. | DylanFloyd | M.S. Madhava Rao |
| Xenous Holdings Inc | Pinnacle | JP Centurion |
| Zhen Ding Resources Inc. | Thayer O’Neal | TPS Thayer LLC |
| Addentax Group Corp. | Pan-China | BF Borgers |
| Data443 Risk Mitigation Inc. | Thayer O’Neal | TPS Thayer LLC |
| Generation Hemp Inc. | Haynie | Marcum LLP |
| Indoor Harvest Corp | Thayer O’Neal | WWC |
| GWG Holdings Inc | Whitley Penn | Grant Thornton |
| NorthWest Indiana Bancorp | Plante & Moran | BKD |
| Eagle Pharmaceuticals | BDO | E&Y |
| HighPeak Energy Inc | Withum | Weaver |
| Adicet Bio Inc | PwC | KPMG |
| fubo TV Inc | Soldinger | KPMG |
Do read our other posts on Auditor changes for FY 2020.
Let’s look at the Auditor changes for the current week. No major changes in the current week except for Ocean Power Technologies switching from KPMG to EisnerAmper. Ocean Power Technologies paid KPMG $317K in audit fees for FY 2020.
| Company | Old Auditor | New Auditor |
|---|---|---|
| Marizyme Inc. | KR Margetson Ltd. | WithumSmith Brown |
| Coro Global Inc. | Liggett & Webb | MaloneBailey |
| The OLB Group Inc. | Marcum LLP | Daszkal |
| Powerverde Inc. | Cherry Bekaert | D. Brooks |
| Tongji Healthcare Group | BF Borgers | Fruci |
| Ocean Power Technologies Inc | KPMG | EisnerAmper |
| Emmaus Life Sciences | BDO | Squar Milner |
Do read our other posts on Auditor changes for FY 2020.
The most frequently searched question for all Big4s are who are their largest audit clients. In the previous blog we looked into how KPMG stacks in regard to audit clients versus the total S&P 500 Companies. Below is a scatterplot showing the audit fee distribution of KPMG clients in the US.
Here is the list of top 25 clients of KPMG in terms of total fees in millions. The financials and industrial sectors are the major contributors in terms of fees for KPMG. Citigroup is KPMG’s biggest audit client generating a fee revenue of $97 million. GE, Wells Fargo, and BNY Mellon occupies the second, third, and fourth place respectively. These 25 clients together contribute $676 million in audit fees for KPMG. KPMG’s total global audit revenues for FY20 was $11 billion.
| Security | GICSÂ Sector | Audit Fees | Audit Related Fees | Tax Fees | Other Fees | Total |
|---|---|---|---|---|---|---|
| Citigroup Inc. | Financials | 67 | 21 | 9 | 0 | 97 |
| General Electric | Industrials | 61 | 14 | 4 | 0 | 79 |
| Wells Fargo | Financials | 46 | 4 | 7 | 0 | 57 |
| The Bank of New York Mellon | Financials | 21 | 23 | 2 | 0 | 47 |
| Pfizer Inc. | Health Care | 41 | 1 | 5 | 0 | 47 |
| General Dynamics | Industrials | 25 | 2 | 2 | 0 | 29 |
| Baker Hughes Co | Energy | 27 | 0 | 0 | 0 | 28 |
| PepsiCo Inc. | Consumer Staples | 24 | 1 | 0 | 0 | 26 |
| Omnicom Group | Communication Services | 23 | 0 | 0 | 0 | 24 |
| Accenture plc | Information Technology | 20 | 1 | 1 | 0 | 23 |
| Emerson Electric Company | Industrials | 20 | 2 | 1 | 0 | 23 |
| FMC Corporation | Materials | 16 | 1 | 1 | 1 | 19 |
| CBRE Group | Real Estate | 13 | 3 | 2 | 0 | 18 |
| CenturyLink Inc | Communication Services | 18 | 0 | 0 | 0 | 18 |
| Occidental Petroleum | Energy | 16 | 0 | 0 | 0 | 16 |
| Western Digital | Information Technology | 10 | 0 | 5 | 0 | 16 |
| Fidelity National Information Services | Information Technology | 13 | 0 | 1 | 0 | 14 |
| Centene Corporation | Health Care | 12 | 1 | 0 | 0 | 13 |
| Estée Lauder Companies | Consumer Staples | 11 | 0 | 2 | 0 | 13 |
| Halliburton Co. | Energy | 12 | 0 | 0 | 0 | 12 |
| Visa Inc. | Information Technology | 10 | 2 | 1 | 0 | 12 |
| SVB Financial | Financials | 11 | 1 | 1 | 0 | 12 |
| Zoetis | Health Care | 10 | 0 | 1 | 0 | 11 |
| NortonLifeLock | Information Technology | 11 | 0 | 0 | 0 | 11 |
| General Mills | Consumer Staples | 8 | 1 | 2 | 0 | 11 |
Do read our posts on KPMG’s audit clients across the various US States and their corresponding Audit Fees. Subscribe to our posts for information on Big4 firms. If there is some data point that you would like us to analyze, just drop in a comment. 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.
One major change this week. KPMG lost the audit of Extreme Networks Inc. which bought in $3.6 million in audit fees previous year. Big win for EY!!
| Company | Old Auditor | New Auditor | Total Fee Previous Auditor (‘000) $ |
|---|---|---|---|
| ZZLL Information Technology | LKC | WWC | – |
| Wytec International Inc. | Malone Bailey | Prager Metis | – |
| Mid Penn Bancorp Inc. | BDO | RSM | – |
| BOQI International Medical | HHC | Audit Alliance | – |
| Extreme Networks Inc. | KPMG | EY | 3,680 |
Big week of Deloitte as it rakes up two audit assignments which paid their previous auditors $4.4 million collectively. Bloom Energy Corp. switched from PwC to Deloitte while Radius Health Inc. switched from EY to Deloitte.
| Company | Old Auditor | New Auditor | Total Fee Previous Auditor (‘000) $ |
| Remark Holdings | Cherry Bekaert | Weinberg | |
| AS Capital Inc. | Olayinka Oyebola | Wei Wei | |
| Bloom Energy Corp. | PwC | Deloitte | 2,709 |
| Radius Health Inc. | EY | Deloitte | 1,647 |
KPMG is one of the biggest audit firms in the world. They operate through a network of firms across the world. The key audit topic areas of KPMG based on their website are (1) Environmental, Social and Governance (2) SPAC IPO readiness for Controllers and CFOs (3) Industrial Manufacturing and AI and (4) Climate risk for the technology industry.
KPMG audits 84 of the 500 companies in S&P 500. KPMG’s biggest market share is within the Real Estate, Communications, and Energy sector. The biggest clients of KPMG in these sectors are CBRE Group, Omnicom Group, and Baker Hughes. In dollar terms, biggest fees is from Citigroup which pays $97.4 million followed by GE which pays $79.1 million. Big loss for KPMG in 2021 when GE switches to Deloitte. In total, the S&P 500 clients brings in ~$1 billion in fees.
The below chart shows KPMG’s share of major US audit clients spread across the different Industry sectors:
| GICSÂ Sector | KPMG # clients | Total Industry (#) | % | KPMG fees ($ M) | Total Industry ($ M) | % |
|---|---|---|---|---|---|---|
| Financials | 14 | 66 | 21% | 287.40 | 1438.89 | 20% |
| Health Care | 7 | 61 | 11% | 92.43 | 848.32 | 11% |
| Information Technology | 13 | 71 | 18% | 114.27 | 841.72 | 14% |
| Industrials | 8 | 69 | 12% | 145.38 | 876.49 | 17% |
| Materials | 5 | 28 | 18% | 40.98 | 393.82 | 10% |
| Consumer Discretionary | 8 | 62 | 13% | 43.01 | 568.64 | 8% |
| Communication Services | 5 | 22 | 23% | 60.59 | 471.79 | 13% |
| Energy | 6 | 26 | 23% | 72.31 | 297.39 | 24% |
| Consumer Staples | 7 | 33 | 21% | 76.48 | 425.49 | 18% |
| Utilities | 1 | 28 | 4% | 10.91 | 263.4 | 4% |
| Real Estate | 10 | 31 | 32% | 50.44 | 141.17 | 36% |
Do read our posts on KPMG’s audit clients across the various US States and their corresponding Audit Fees. Subscribe to our posts for information on Big4 firms. If there is some data point that you would like us to analyze, just drop in a comment.
Few auditor changes in the two weeks of August. In terms of revenue, SJW Group which bought in $2 million revenues for KPMG past year switched to Deloitte. Meanwhile KPMG gained 2 clients which together paid $1.2 million last year to their auditors. PwC lost Casa Systems Inc. audit to EY. The expected revenues from this engagement will be $1.6 million.
| Company | Old Auditor | New Auditor | Total Fee Previous Auditor (‘000) $ |
|---|---|---|---|
| Healthcare Solutions Management Group Inc. | BMKR LLP | Borgers | |
| Soltrest Inc. | MG LLC | ||
| Casa Systems Inc | PwC | EY | 1,586 |
| Aptevo Therapeutics Inc. | EY | Moss Adams LLP | 543 |
| ROID Group Inc. | Prager Metis | MG LLC | |
| American Outdoor Brands Inc | Deloitte | GT | |
| Resonant Inc. | Crowe LLP | KPMG | 557 |
| Innodata Inc. | CohnReznick | BDO | |
| Versus International Inc. | Assurance Dimensions | RBSM | |
| mPhase Technologies Inc | Assurance Dimensions | RBSM | |
| SJW Group | KPMG | Deloitte | 2,031 |
| Boston Omaha Corp. | MaloneBailey | KPMG | 641 |