Hong Kong firm adds the most SEC audit clients in Q3

Ark Pro CPAs, an audit firm based in Hong Kong, topped the charts for the new Securities and Exchange Commission clients in the third quarter of 2023.

The firm added five new clients during the period, all based in China and all of which had been previously audited by another Hong Kong-based firm, Centurion ZD. (See "Net engagement leaders.") In August, Centurion was sanctioned for "serious breaches of professional standards" by Hong Kong's audit regulator, the Accounting and Financial Reporting Council.

Both Deloitte and Grant Thornton actually added more clients during the period — nine and seven, respectively — but netted fewer than Ark Pro, with three apiece. (See "Q3 2023 client gains & losses.")

Overall, the number of new engagements signed dropped to 142 in Q3, a big fall-off from Q2's 191, and a break with a rising trend that began in early 2022.

 
Clients by filing status, and more

In terms of clients by filing status, Deloitte led among large accelerated filers, while Ark Pro led among both accelerated and non-accelerated filers. (See "Audit leaders.")

Deloitte also topped our three main league tables for new market capitalization audited, new assets audited and new audit fees. (See "New client leaders.")

With $5.5 billion in market cap, Littelfuse Inc., a global manufacturer of circuit protection and power control equipment, provided the biggest chunk of Deloitte's $14.3 billion market cap, while moving and storage services provider U-Haul Holding Co.'s $18.1 billion in assets accounted for almost half of Deloitte's $38.6 billion, and its $4.4 million in audit fees was the biggest single contributor to the Big Four firm's $21 million in new audit fees (though three other companies, including Littelfuse, contributed fees of between $3 million and $4 million each).

PricewaterhouseCoopers came second in new market cap and new assets audited, thanks to a familiar name in the accounting space: payment automation solutions provider Bill Holdings Inc., which accounted for almost all of PwC's $12.9 billion in new market cap and $9.7 billion in new assets audited.

Grant Thornton, meanwhile, took second place in new audit fees, with $8.5 million from a range of new clients; the largest contributor was home and long-term care medical products manufacturer Invacare, with $3.2 million in audit fees.

Data for the quarterly rankings are provided by Audit Analytics, a premium online intelligence service delivering audit, regulatory and disclosure analysis. Reach them at (508) 476-7007, info@auditanalytics.com or www.auditanalytics.com.