One thing that hasn’t slowed down too much during the Rona pandemic is the game of auditor musical chairs, as there were 51 new SEC audit client engagements and 62 departures in the second quarter among the 12 major global or national accounting firms compared to 57 new engagements and 68 departures in Q1, according to Audit Analytics.
And which firm prospered the most in Q2? Whoa, the Purple Rose of Chicago! Grant Thornton picked up 11 new clients and lost three for a net of eight, Audit Analytics revealed in its latest analysis of audit client gains and losses, which was first published by Accounting Today.
GT got seven new clients from the Big 4 firms, while only losing one to KPMG.
EY actually took on the most new SEC clients in Q2 with 12, but the Black and Yellow dropped eight, for a net of four. According to Audit Analytics, EY gained two clients from and lost two clients to both Deloitte and KPMG but ransacked PwC and took five clients.
But the biggest loser in Q2 was the Big 4 firm that in June lost its 111-year General Electric engagement to Deloitte, a relationship that netted this firm more than $2 billion in fees over the past 20 years—K to the P to the M to the G.
Everyone’s favorite radio station/golf apparel company said goodbye to a whopping 13 clients in Q2 while only gaining four, for a net of -9. KPMG saw three clients go to PwC, two each to EY, BDO USA, and GT, and one each to Marcum and Moss Adams. The other two clients went to local or regional firms.
The only other firm in the top 12 that leaked almost as many audit clients as KPMG was Marcum, which gained two and saw 11 depart, for a net of -9. P. Dubs also lost 11 clients but gained six for a net of -5.
Here’s a chart from Audit Analytics showing all the client gains and losses in Q2:Auditor Changes Roundup: Q2 2020 [Audit Analytics]
Grant Thornton leads in Q2 new SEC audit clients [Accounting Today]