Deloitte takes a commanding lead in Q2 audit clients

With 15 new Securities and Exchange Commission audit clients in the second quarter of 2017, Big Four firm Deloitte & Touche far outpaced its rivals among both large and small auditors.

Its closest competitors among large firms for new clients were Ernst & Young, which brought in 10, and Marcum, which signed on eight new engagements. (see “Q2 Client Gains & Losses”).

Even on a net basis, Deloitte remained the leader, with a final gain of nine new clients, one more than its nearest competitor, Tampa, Fla.-based Assurance Dimensions (see “Net Engagement Leaders”), which picked up eight new and net clients after merging in Coconut Creek, Fla.-based D’Arelli Pruzansky in May. The merger gave the combined firm two offices and over 20 employees. RSM US and Lakewood, Colo.-based BF Borgers CPA tied for third in net new clients, with six each.

The eight new clients from its May merger put Assurance Dimensions in the lead in terms of new smaller reporting company engagements, while Deloitte brought on the most large accelerated filers and the most non-accelerated filers (see “Audit Leaders”). Ernst & Young took in the most new accelerated filers.

With its strong lead in fresh engagements, Deloitte topped the league tables in three categories – new market capitalization audited, new assets audited and new audit fees (see “New client leaders”). Three companies accounted for the biggest chunk of its $51 billion in new market cap audited: IT services and solutions provider DXC Technology, at $21 billion; diversified holding company Leucadia National Corp., at $8.4 billion; and rubber and other product manufacturer Carlisle Cos. Inc., at $7.1 billion. Leucadia’s $45 billion in assets made up the bulk of Deloitte’s $84 billion in new assets, and its $9.3 million audit fees was the biggest single contributor to the firm’s $42.8 million in new fees, with aerospace manufacturer Orbital ATK coming in second with $8 million.

Pwc took second in two categories, with natural gas transmission company Spectra Energy Partners’ $14 billion in market cap and $21.6 billion in assets accounting for almost all of the firm’s haul in both areas. Ernst & Young, meanwhile, took second in new audit fees, with oil tanker operator Overseas Shipholding Group providing $4 million of its $15 million, and the rest distributed across its nine other new engagements.

Data for the quarterly rankings are provided by Audit Analytics, a premium online intelligence service delivering audit, regulatory and disclosure analysis. Reach them at (508) 476-7007, info@auditanalytics.com or www.auditanalytics.com.