Auditor changes roundup: Q4 2023

Sarah Keohane Date published: Mar 22, 24 Last updated: Mar 28, 24

GreenGrowth CPAs led the final quarter of 2023 in terms of net SEC audit client gains, adding 30 new clients during the quarter after completing two significant mergers. In October, Gries & Associates sold its business to GreenGrowth, consequently handing over 18 of their previous clients during Q4. Additionally, Pinnacle Accountancy Group of Utah (a dba of Heaton & Company PLLC) sold a portion of its practice to GreenGrowth, adding another 11 clients to their total.

Global and national firms

Overall, the top ten global & national audit firms gained 22 and lost 47 clients during Q4 2023.

The table below presents a complete view of the gains and losses of the major global and national firms. It shows the number of SEC audit clients that each auditor gained or lost. Additionally, it shows which firm the client was won from or lost to.

For the third consecutive quarter, Deloitte had the most net clients gains among the top 10 global and national firms. The Big Four firm added six new clients during the quarter with one departure for a net of five clients.

On the other hand, BDO USA and Marcum continue to see the most net losses. BDO lost another 10 clients overall in Q4 with 11 departures and one new engagement. Marcum experienced heavy losses this quarter with 18 departures and five new engagements for a net loss of 13 clients during the quarter.

Market cap and audit fee gains

KPMG saw the largest net market cap gains from their new engagements in Q4, bringing in companies with a net market cap  of $3.5 billion. Their largest new client was Arrowhead Pharmaceuticals, a California-based biopharmaceutical company that added a market cap of $2.8 billion to their total.

EisnerAmper saw the largest gains in terms of net audit fees in Q4 with a net gain of $7.6 million. Their new client, Exela Technologies, paid their previous auditor (KPMG) $7.2 million in audit fees for FY2022. Deloitte followed with a net gain of $5.9 million in audit fees, led by their new client Cantaloupe Inc., which paid its previous auditor (BDO) $2.4 million in audit fees for FY2023.

Filer Status

• KPMG gained the most large accelerated filer clients in Q4 with two new clients.
• EisnerAmper led for accelerated filers gaining three new clients during the quarter.
• GreenGrowth dominated the non-accelerated filer and smaller reporting company market with 29 new clients, largely gained as a result of their previously mentioned mergers.
   

Overall, there were 157 new engagements during Q4 2023. According to Accounting Today, this was “a fair rise from Q3’s 142, and much closer to the average highs of 2022.”

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