As we mentioned last August, CliftonLarsonAllen—the love child of Clifton Gunderson and LarsonAllen—has been the most dominant public accounting firm
that no one really cares about the past three years when it comes to serving clients in the construction industry. But apparently construction isn’t the only client base that C to the L to the A dominates.
From a recent Audit Analytics analysis of auditor market share of not-for-profits:
The top firm, CliftonLarsonAllen, performs audits for nearly double the number of [non-profit] clients as the next closest competitor, Eide Bailly. Worth noting, CliftonLarsonAllen’s 1,274 clients equate to just 3.50% of this overall market, speaking to the large scope of the market.
And the market is pretty vast. Audit Analytics’ non-profit database contains 36,192 single audits for 2020, performed by 3,239 audit firms. Any organization or entity that receives $750,000 or more in federal funding in a single fiscal period is required to obtain an audit by an independent accountant, Audit Analytics noted. This includes an audit of both the institution’s financial statements and the federal award.
And who knew that CLA audits the most single-employer and multiemployer ERISA plans?
Just like audits of non-profit groups, audits of ERISA plans are done by a wide array of accounting firms that a majority of you have never heard of before. In fact, 4,538 firms participated in audits of nearly 93,000 plans in 2019, according to Audit Analtyics.