Accounting Today has shared Audit Analytics data on the Q4 2013 auditor shuffle and of large and national firms, Marcum came out on top with a net gain of five. I'm no mathlete but that's a whole… er… well it's more than EY's -6 net:
Big Four firm KPMG and McGladrey followed up with net gains of three clients each for the period (See “Q4 2013 Client Gains & Losses”). KPMG also pulled off a trifecta in other measures, topping the lists for new market cap audited, new assets audited and new audit fees (See “New Client Leaders”). It was helped there in particular by signing up box manufacturer Packaging Corp. of America (with a market capitalization of $6.2 billion) and lab instrument manufacturer Bio Rad Laboratories (with a market cap of $3 billion). PricewaterhouseCoopers came in second in terms of market cap audited on the strength of a single new engagement — semiconductor manufacturer Cree Inc. (with a market cap of $7.5 billion).
Accounting Today fails to mention in the article (though it can be found in the Q4 2013 Client Gains & Lossesgraphic) that EY lost five audit clients to other Big 4 firms (three to KPMG), one to a national and one to a regional, gaining just one audit client from PwC. KPMG offset the loss of four clients to national firms by picking up seven clients from other Big 4 firms.
And you know he’s not messin’ because that’s what he told Charlie Gasparino and God knows you best not lie to the Fox Business Network’s ace reporter. Sure Bové didn’t actually say “KPMG” (hell, he’s probably never heard the name) but he’s giving credit to auditors which is about as unheard of as Tiger Woods using Trojans with hookers.
Bové may have mentioned some other things about Mike Mayo, Citi, Deferred Tax Assets so on and so forth but we’re sure you’re not worried about that.
Btw, if you need to get caught up on just who Dick Bové is, go here. Courtesy of FBN:
On Citi’s apparent cold shoulder towards analyst Mike Mayo:
“It’s totally wrong. Mike Mayo is a brilliant analyst. He’s been in this business for a long period of time and does a superb job of following the industry. To say he can’t come in and speak to the company in my view is absolutely and totally incorrect.”
On whether Mike Mayo’s accusations against Citigroup’s risk management lapses are accurate:
“Absolutely. In September of 2008, Citigroup was effectively bankrupt. The reason why it was bankrupt was the reason that Mike cites. It was that the risk management procedures had completely broken down and it was not effectively managing its portfolio. Mike is right on that comment.”
On why we should believe Citi on its accounting reports:
“We don’t have to take Citigroup’s answer to Mike Mayo. We can take a look at the fact that this company is audited by an exceptional group of auditors. They are regulated by a large number of bank regulators…and they actually are being audited for their tax issues right now by the IRS. All three of these groups agree with the public statements of Citigroup concerning DTAs.”
“What is the basis for saying that these three groups which have seen the numbers don’t know what they are talking about, whereas people that have not seen the numbers, do know what they are talking about.”
On whether Citi has been given a clean bill of health by the SEC, IRS and the Fed:
“We do have an audited financial statement which is not questioning the DTAs. We do have bank regulators who could have memorandums of understating with Citigroup if they believed there was a problem. Citi is estimated to earn by Mike Mayo $9 billion this year. Next year he estimates the company to show a 33 percent increase in earnings to $12 billion. If there is a DTA problem, why is there a belief that the company can jump its earnings by 33 percent from 2010 to 2011?”
We’ve been assured by the wonderful people at Fox that we will have video of this momentous (and perhaps unprecedented) occasion just as soon as it’s available.
UPDATE: AS WE SUSPECTED! Not only was the initial report mis-transcribed, check out Dick’s reaction to Gasparino’s question, “It’s KPMG I believe, correct?” around the 2:37 mark:
Pretty obvious that the dude has never heard of KPMG in his life.
