Its a new year!! Couple of changes in the first week of the new year. PwC and Deloitte gains two clients each while KPMG had a net loss of one audit client.
Deloitte UK had a fee income of 3.7 billion pounds in FY20 which is an increase of 8% from the prior year. For FY19, Deloitte UK had a fee income of 3.4 billion pounds. See below for a breakout of Deloitte’s fee incomes over the past five years. Fee income grew on an average of 8.6% over the past five years.
Looking at the break-down of fee income among audit clients and non-audit clients we notice that direct audit fees has increased on an average by 4% while non-audit services to audit clients has increased on an average by 6%. Deloitte is probably the only big4 firm where non-audit services to audit clients is showing an increasing trend. Advisory income has increased on an average by 10% for 5 years. The table below shows the break-down in millions pounds.
The Financial Reporting Council (FRC) published its latest inspection reports on Deloitte in July 2020. Of the 17 audits reviewed, 13 (76%) were graded as good or requiring limited improvements. 3 (18%) and 1 (6%) audits were graded as improvements required and significant improvements required respectively. For FTSE 350 audits, of the 10 audits reviewed, 9 (90%) were graded as good or requiring limited improvements and 1 (10%) audit was graded as improvements required. The summary of Deloitte’s inspection results for the past five years is noted below. In 2015, 82% of audits were graded as good vs. 76% in 2020.
Deloitte FTSE 350 Clients
Deloitte audits 79 of the 350 FTSE companies bringing in a total revenue of 309 million pounds. WPP plc is the biggest client which brings in revenue of 43 million pounds, i.e. 14% of the total FTSE 350 audit fees. BP is the next biggest audit client which brings in 37 million pounds. The top 5 audit clients brings in 49% of the total revenue. All 79 Deloitte audit clients and their audit fee is included in the graphic below:
The top 25 audit clients of Deloitte in UK in the order of audit fee revenues are as follows:
Company
Auditor
Total ('000) GBP
WPP plc
Deloitte
42,700
BP Plc
Deloitte
36,980
GlaxoSmithKline plc
Deloitte
30,400
Glencore plc
Deloitte
22,641
National Grid
Deloitte
18,000
BAE Systems plc
Deloitte
10,815
Melrose Industries plc
Deloitte
9,700
Tesco plc
Deloitte
9,700
Anglo American
Deloitte
9,509
Centrica plc
Deloitte
8,600
TP ICAP plc
Deloitte
8,059
Airtel Africa plc
Deloitte
6,380
Ferguson plc
Deloitte
5,811
TUI AG
Deloitte
4,600
Helios Towers plc
Deloitte
4,377
FirstGroup plc
Deloitte
4,100
Inchcape plc
Deloitte
3,800
Informa plc
Deloitte
3,700
ConvaTec Group Plc
Deloitte
3,094
Man Group plc
Deloitte
2,703
Marks & Spencer Group plc
Deloitte
2,700
Signature Aviation plc
Deloitte
2,700
Unite Group
Deloitte
2,500
OneSavings Bank plc
Deloitte
2,444
Kingfisher
Deloitte
2,400
Post a comment on any other metric you would like to know about Deloitte UK or if you need this dataset. Look into our other blog posts on PwC, KPMG, and EY UK. 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.
The most frequently searched question for all Big4s are who are their largest audit clients. In the previous blog we looked into how Deloitte stacks in regard to audit clients versus the total S&P 500 Companies. Below is a scatterplot showing the audit fee distribution of Deloitte clients in the US.
Here is the list of top 25 clients of Deloitte in terms of total fees in millions. The financials and information technology sectors are the major contributors in terms of fees for Deloitte. These 25 clients together contribute $778 million in audit fees for Deloitte. Total revenue for Deloitte US from Audit and Enterprise Risk Solutions for FY 2020 was $6.3 billion. Deloitte’s biggest audit client in the US is MetLife Inc. which pays an audit fee of $83.20 million. Microsoft Corp. and Morgan Stanley are the second and third biggest client of Deloitte audit respectively.
Company
Audit Fees
Audit related
Tax
Other Fees
Total fees
MetLife Inc.
63.40
8.30
3.10
8.40
83.20
Microsoft Corp.
41.44
14.45
2.24
0.15
58.28
Morgan Stanley
50.60
4.80
0.90
0
56.30
Berkshire Hathaway
46.70
1.90
0.40
0
49.00
DXC Technology
27.00
17.00
2.00
1.00
47.00
Dow Inc.
25.14
4.44
2.78
0
32.36
Boeing Company
31.10
0.50
0
0.10
31.70
Procter & Gamble
28.45
1.8
0.46
0.38
31.1
Comcast Corp.
28.00
1.50
0.70
0.10
30.30
Bristol-Myers Squibb
16.70
2.20
10.00
0.10
29.00
McKesson Corp.
19.10
5.14
0.27
2.00
26.51
United Health Group Inc.
20.24
3.26
2.41
0.10
26.00
International Paper
15.77
3.67
5.54
0.08
25.06
Marsh & McLennan
20.05
2.05
2.44
0.01
24.54
BlackRock
18.36
3.89
1.43
0.77
24.45
Honeywell Int'l Inc.
17.88
5.64
0
0
23.52
Deere & Co.
20.05
1.03
1.06
0
22.13
Walgreens Boots Alliance
12.84
0.6
8.1
0.58
22.11
Ingersoll Rand
4.35
6.84
3.47
7.04
21.69
Coty, Inc
11.57
0.38
9.59
0.05
21.58
Loews Corp.
20.01
0.73
0.03
0.02
20.79
United Parcel Service
16.46
1.27
0.63
0
18.36
Northrop Grumman
17.89
0
0.47
0
18.36
Willis Towers Watson
15.82
1.60
0.26
0.06
17.74
Southern Company
15.08
2.07
0
0.07
17.23
Do read our posts on Deloitte’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.
Deloitte is one of the biggest audit firms in the world. They operate through a network of firms across the world. Deloitte’s market segments include (1) Private Companies (2) Private Equity (3) Audit services for startups and (4) Industries. Take a read on Deloitte Omnia, the global audit platform which delivers the Deloitte’s audit experience.
A closer look at Deloitte’s audit clients within S&P 500 companies. Deloitte’s biggest market share is within the Utilities sector where it audits 57% of the companies within that sector. The biggest names in the Utilities space audited by Deloitte are Southern Company and Duke Energy. In dollar terms, Deloitte’s biggest audit fees is from Metlife Inc. which brings in $83 million in fees followed by Microsoft Corporation which pays Deloitte $58 million.
The below chart shows Deloitte’s share of major US audit clients spread across the different Industry sectors:
GICSÂ Sector
Deloitte # clients
Total Industry (#)
%
Deloitte fees ($ M)
Total Industry ($ M)
%
Financials
17
66
26%
355.28
1438.89
25%
Health Care
6
61
10%
98.93
848.32
12%
Information Technology
14
71
20%
203.16
841.72
24%
Industrials
16
69
23%
202.59
876.49
23%
Materials
4
28
14%
66.53
393.82
17%
Consumer Discretionary
14
62
23%
88.51
568.64
16%
Communication Services
1
22
5%
30.3
471.79
6%
Energy
1
26
4%
3.58
297.39
1%
Consumer Staples
6
33
18%
96.26
425.49
23%
Utilities
16
28
57%
136.76
263.4
52%
Real Estate
4
31
13%
29.06
141.17
21%
Grand Total
99
497
1310.94
6567.13
Do read our posts on Deloitte’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.
Check out our earlier blogposts on the Big4 accounting firms and their audit clients across the various states in the US. The last grouping is US S&P 500 Companies with headquarters located outside the US. PwC audits most of these companies. The largest among them is Chubb Limited which pays PwC an audit fee of $28.73 million.
Company
Headquarters Location
Auditor
Total ($ million)
Chubb Limited
Zurich, Switzerland
PwC
       28.73
Schlumberger Ltd.
Curaçao, Kingdom of the Netherlands
PwC
       17.60
TE Connectivity Ltd.
Schaffhausen, Switzerland
Deloitte
       12.22
LyondellBasell
Rotterdam, Netherlands
PwC
       11.60
Mylan N.V.
Amsterdam, Netherlands
Deloitte
       11.10
Everest Re Group Ltd.
Hamilton, Bermuda
PwC
         6.29
Garmin Ltd.
Schaffhausen, Switzerland
EY
         3.19
Check out our other blogposts for a listing of the top 25 clients of PwC, Deloitte, EY, and KPMG in the US. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.
Check out our earlier blogposts on the Big4 accounting firms and their audit clients across the various states in the US. We are now left with the last grouping of states. The prominent among them is CVS, headquartered in Rhode Island. EY brings in an audit revenue of $33.54 million each year from CVS.
Company
Headquarters Location
Auditor
Total ($ million)
CVS Health
Woonsocket, Rhode Island
EY
       33.54
CenturyLink Inc
Monroe, Louisiana
KPMG
       17.91
Principal Financial Group
Des Moines, Iowa
EY
       14.72
Micron Technology
Boise, Idaho
PwC
       14.20
Textron Inc.
Providence, Rhode Island
EY
       12.68
Humana Inc.
Louisville, Kentucky
PwC
       10.25
Regions Financial Corp.
Birmingham, Alabama
EY
         9.82
Entergy Corp.
New Orleans, Louisiana
Deloitte
         9.52
Williams Cos.
Tulsa, Oklahoma
EY
         9.00
Hasbro Inc.
Pawtucket, Rhode Island
KPMG
         8.07
Citizens Financial Group
Providence, Rhode Island
Deloitte
         7.32
Yum! Brands Inc
Louisville, Kentucky
KPMG
         7.18
Devon Energy
Oklahoma City, Oklahoma
KPMG
         3.93
Vulcan Materials
Birmingham, Alabama
Deloitte
         3.22
Brown-Forman Corp.
Louisville, Kentucky
PwC
         3.12
FLIR Systems
Wilsonville, Oregon
KPMG
         2.93
Lamb Weston Holdings Inc
Eagle, Idaho
KPMG
         2.93
IDEXX Laboratories
Westbrook, Maine
PwC
         2.51
ONEOK
Tulsa, Oklahoma
PwC
         2.46
Paycom
Oklahoma City, Oklahoma
GT
         1.32
Check out our other blogposts for a listing of the top 25 clients of PwC, Deloitte, EY, and KPMG in the US. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.
There is a total of 10 S&P clients in Arizona, Nebraska and Arkansas. EY leads the pack with $57 million in audit fees and 5 audit clients. Deloitte has the biggest client in region: Berkshire Hathaway from Nebraska which alone bought in audit fees of $49 million. Another big client in the region is Walmart which paid EY $27.75 million in total audit fees for FY 20. PwC’s lone audit client in the region is Tyson Foods.
Auditor
# of companies audited
Total fees ($ million)
%
EY
5
56.68
43%
Deloitte
3
55.99
42%
KPMG
1
11.37
9%
PwC
1
8.10
6%
Full details of the audit client, location, and total audit fees for FY 20 is noted below:
Security
Headquarters Location
Auditor
Total ($ million)
Berkshire Hathaway
Omaha, Nebraska
Deloitte
49.00
Walmart
Bentonville, Arkansas
EY
27.75
Freeport-McMoRan Inc.
Phoenix, Arizona
EY
13.68
NortonLifeLock
Tempe, Arizona
KPMG
11.37
Microchip Technology
Chandler, Arizona
EY
9.13
Tyson Foods
Springdale, Arkansas
PwC
8.10
Republic Services Inc
Phoenix, Arizona
EY
4.21
Union Pacific Corp
Omaha, Nebraska
Deloitte
3.73
Pinnacle West Capital
Phoenix, Arizona
Deloitte
3.26
J. B. Hunt Transport Services
Lowell, Arkansas
EY
1.90
Look at our other blog posts for a listing of big 4 accounting firms and their respective S&P 500 audit clients. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.
There are 13 S&P companies headquartered in Colorado, Nevada, and Utah. There are 8 S&P companies in Colorado with Nevada and Utah having 3 and 2 companies respectively. EY audits 7 of the largest companies within these three states bringing in a total audit fee of $37 million. Here are the details for the companies in this region.
Auditor
# of companies audited
Total fees ($ million)
%
EY
7
36.79
43%
PwC
2
19.05
22%
Deloitte
2
17.47
20%
KPMG
2
12.63
15%
PwC’s biggest audit client in these three states is Ball Corp which brings in $13.60 million in audit fees. Newmont Corporation is EY’s biggest audit client which pays $12.8 million in audit fees.
Company
Headquarters Location
Auditor
Total ($ million)
Ball Corp
Broomfield, Colorado
PwC
13.60
Newmont Corporation
Denver, Colorado
EY
12.82
MGM Resorts International
Paradise, Nevada
Deloitte
10.00
DaVita Inc.
Denver, Colorado
KPMG
8.77
Western Union Co
Englewood, Colorado
EY
8.00
Las Vegas Sands
Las Vegas, Nevada
Deloitte
7.46
Molson Coors Brewing Company
Denver, Colorado
PwC
5.45
Zions Bancorp
Salt Lake City, Utah
EY
5.31
Wynn Resorts Ltd
Paradise, Nevada
EY
4.06
Dish Network
Meridian, Colorado
KPMG
3.87
Extra Space Storage
Salt Lake City, Utah
EY
2.58
Apartment Investment & Management
Denver, Colorado
EY
2.11
UDR, Inc.
Highlands Ranch, Colorado
EY
1.92
Look at our other blog posts for a listing of big 4 accounting firms and their respective S&P 500 audit clients. Subscribe to our posts for updated information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.
There are 10 S&P 500 companies headquartered in Missouri. KPMG leads the pack bringing in $40 million in total audit fees from 3 companies. PwC and Deloitte takes the second and third spot respectively.
Auditor
# of companies audited
Total fees ($ million)
%
KPMG
3
40.09
62%
PwC
4
13.98
22%
Deloitte
2
7.71
12%
EY
1
2.45
4%
Emerson Electric is KPMG’s biggest audit client in the Missouri region. Emerson Electric pays KPMG $22.50 million in total audit fees. PwC’s biggest audit client in the region is Ameren Corp.
Company
Headquarters Location
Auditor
Total ($ million)
Emerson Electric Company
Ferguson, Missouri
KPMG
22.50
Centene Corporation
St Louis, Missouri
KPMG
13.46
Ameren Corp
St. Louis, Missouri
PwC
4.69
Evergy
Kansas City, Missouri
Deloitte
4.58
Jack Henry & Associates
Monett, Missouri
PwC
4.39
Cerner
North Kansas City, Missouri
KPMG
4.13
H&R Block
Kansas City, Missouri
Deloitte
3.14
Leggett & Platt
Carthage, Missouri
PwC
2.85
O'Reilly Automotive
Springfield, Missouri
EY
2.45
Kansas City Southern
Kansas City, Missouri
PwC
2.04
Look into our other blog posts for a listing of big 4 accounting firms and their respective S&P 500 audit clients. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.
