|
 The International Accounting Bulletin said Deloitte <DLTE.UL>, PwC <PWC.UL>,
KPMG <KPMG.UL> and EY <ERNY.UL>, dubbed the Big Four, still dominate
the sector with over two-thirds of the market, dwarfing the combined
33 percent share of mid-tier firms like BDO and Grant Thornton.
Deloitte reported fee income of $32.4 billion last year, just ahead
of PwC with $32 billion. EY came third with $25.9 billion and then
KPMG with $23.4 billion.
Deloitte's lead may be temporary as PwC awaits regulatory approval
for its takeover of Booz & Co, which would bump up its revenues by
more than $1 billion.
Market share figures will be closely watched by European regulators
in coming years as they put pressure on listed companies to switch
accountants more frequently, to avoid cozy relationships that could
blunt skepticism.
So far the switching has occurred between the Big Four in Europe
ahead of a new law, from around 2016, when accountants must be
changed every 10-20 years.
"Many mid-tier leaders feel the EU reform has not gone far enough to
increase competition in the audit market and believe... they are
likely to only rotate among the big firms," the IAB annual survey
said.
Smaller accountants are likely to pick up more advisory work because
of the reforms which also limit Big Four income from non-audit
services, the survey said.
[to top of second column] |
The revenue gulf between the Big Four and next tier down remains
huge, with income at BDO totaling $6.4 billion and Grant Thornton at
$4.5 billion.
The IAB survey looked at 50 top firms which this year included three
new entrants, two China-linked Shinewing and Key Will Group, a sign
of how homegrown challengers are emerging from the world's second
biggest economy.
Revenues in the sector grew about 3 percent overall but downward
pressure on accounting fees increased, leaving firms worried about
audit quality, a concern echoed by regulators.
Accountants said the pressure was due to customers struggling to see
the value of auditing, undercutting by rival accountants as a tactic
to retain auditing work, and the Big Four bidding for work from
smaller customers, the survey said.
(Reporting by Huw Jones; editing by
Anthony Barker)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
