Prager Metis merges in most new SEC clients in Q2

Top 100 Firm Prager Metis took the lead among accounting firms with the most new Securities and Exchange Commission audit clients in the second quarter of 2019, while Big Four firm Deloitte & Touche continued to dominate among the largest auditors.

New York-based Prager Metis brought on 16 net engagements, for a total number of 18, with 16 of those new clients coming from its February 2019 merger with Las Vegas-based AMC Auditing.

AT-080519-Q2 SEC audit clients 2019

Deloitte, meanwhile, netted nine clients on 10 new engagements, putting it far ahead of its large-firm rivals. While a number of those made strong showings in terms of new clients — including BDO USA with nine, EY with eight, and Grant Thornton and Marcum with seven — none of them managed to match Deloitte in terms of retention.

Firm Wins and losses Net clients
Deloitte +10/-1 9
Grant Thornton +7/-5 2
Crowe +3/-3 0
EY +8/-9 -1
BKD -1 -1
Marcum (1) +7/-9 -2
EisnerAmper -2 -2
Moss Adams -2 -2
KPMG +5/-9 -4
BDO USA +9/-14 -5
RSM US +3/-9 -6
PwC +2/-8 -6

1 Comprising Marcum LLP & Marcum Bernstein Pinchuk LLP

(For a more extensive matrix of leading firms, click here; for the full list of Net Engagement Leaders, see the bottom of this article.)

Clients by filing status, and more

Given their leading performance, it’s no surprise that Deloitte took the lead in terms of both new large accelerated filers and new accelerated filers, while Prager Metis picked up the most smaller reporting companies and non-accelerated filers in the second quarter.

Note that, because the SEC is now allowing companies to identify as both a smaller reporting company and either an accelerated or a non-accelerated filer, the list below has combined smaller reporting companies with non-accelerated filers.

AUDIT LEADERS

Large accelerated filers
Auditor Wins Losses Net
Deloitte & Touche 5 0 5
Ernst & Young 4 4 0
BDO USA 1 1 0
Crowe 1 1 0
Grant Thornton 1 1 0
PwC 1 1 0
KPMG 1 4 -3
Accelerated filers
Auditor Wins Losses Net
Deloitte & Touche 3 1 2
Grant Thornton 4 3 1
Crowe 2 1 1
KPMG 2 1 1
Baker Tilly Virchow Krause 1 0 1
Boulay 1 0 1
Marcum 1 0 1
Moody Famiglietti & Andronico 1 0 1
PKF O’Connor Davies 1 0 1
Stowe & Degon 1 0 1
Weinberg & Co. 1 0 1
RSM 3 3 0
Smaller reporting companies and non-accelerated filers
Auditor Wins Losses Net
Prager Metis CPAs 18 -2 16
Haskell & White 3 0 3
Wipfli 3 0 3
Friedman 5 -3 2

Ranked by net gain. Ties are broken by overall number of client wins, then by alphabetical order.

Interestingly, while Deloitte & Touche led in terms of the number of new clients, it didn’t top the tables in terms of new market capitalization audited, new assets audited or new audit fees. EY led the league in the first and third categories, thanks in large part to its engagement with mobile payment company Square Inc., which accounted for more than $18 billion of its $22.76 billion in new market cap audited, and $4.48 million of its $13.5 million in new audit fees. It came in second in terms of new assets audited, following PricewaterhouseCoopers, which nabbed the top spot by onboarding Andeavor Logistics, an oil and gas refining, storage and pipeline company, accounting for $10.3 billion of its $10.650 billion in assets audited. (It’s worth noting, though, that Andeavor was acquired by another company in late July.)

NEW CLIENT LEADERS

By market capitalization audited
Auditor Market cap
Ernst & Young

$22,762,919,054

PricewaterhouseCoopers $9,911,789,751
Deloitte & Touche $8,390,489,321
KPMG $2,429,941,209
Grant Thornton $1,769,545,555
BDO USA $1,285,911,319
Marcum $1,004,420,202
Crowe $911,424,218
RSM $708,678,562
MAF $655,788,430
Boulay $344,947,598
Stowe & Degon $290,675,000
Baker Tilly Virchow Krause $86,872,004
Semple Marchal & Cooper $83,525,032
Haskell & White $62,304,450
By assets audited
Auditor Assets audited
PwC $10,650,388,000
Ernst & Young $9,800,195,135
Deloitte & Touche $6,733,843,125
Crowe $6,733,835,000
KPMG $2,471,762,817
Grant Thornton $2,118,872,000
RSM $1,781,036,000
BDO USA $1,714,945,000
Marcum $356,097,840
Stowe & Degon $176,463,000
Johnson Lambert & Co. $150,283,193
MAF $125,175,000
MaloneBailey $96,816,942
Boulay $94,935,901
By new audit fees
Auditor Audit fees
Ernst & Young $13,531,556
Grant Thornton $9,336,445
Deloitte & Touche $9,159,213
BDO USA $5,640,575
KPMG $4,309,291
PricewaterhouseCoopers $4,005,620
RSM $2,162,100
Marcum $1,610,822
MAF $1,600,000
Crowe $1,166,357
Baker Tilly Virchow Krause $984,857
Wipfli $639,748
CBIZ MHM $599,140
MaloneBailey $580,440
Yu CPA $530,000

NET ENGAGEMENT LEADERS

Firms Net engagements New engagements
Prager Metis CPAs† 16 18
Deloitte & Touche 9 10
Haskell & White 3 3
Wipfli 3 3
Grant Thornton 2 7
Baker Tilly Virchow Krause† 2 5
Friedman 2 5
Fruci & Associates 2 4
BF Borgers CPA 2 3
Boulay 2 3
Dixon Hughes Goodman 2 2
HKCM CPA & Co. 2 2
KSP Group Inc. 2 2
Mazars USA 2 2
Michael T Studer CPA 1 2
Weinberg & Co. 2 2
Hall & Co. CPAs 1 2
Accell Audit & Compliance 1 1
AJSH & Co 1 1
Boyle CPA 1 1
Cohen & Co. Ltd. 1 1
Davidson & Co. 1 1
dbbmckennon 1 1
GBQ Partners 1 1
HHC CPA 1 1
JLKZ CPA 1 1
Johnson Lambert & Co. 1 1
KCCW Accountancy Corp. 1 1
Macias Gini & O’Connell 1 1
CBIZ MHM 1 1
Milhouse & Neal 1 1
Moody Famiglietti & Andronico 1 1
Pan-China Singapore 1 1
Pinnacle Accountancy Group 1 1
PKF O’Connor Davies 1 1
Salberg & Co. 1 1
Semple Marchal & Cooper 1 1
SingerLewak 1 1
Spicer Jeffries 1 1
Squar Milner 1 1
Stowe & Degon 1 1
Thayer O’Neal Co. 1 1
Total Asia Associates 1 1
Turner Stone & Co. 1 1
Wang CPA 1 1
Wei Wei & Co 1 1
Whitley Penn 1 1
Yu CPA 1 1

Ranked by net engagements; ties are broken by the number of new engagements, then by alphabetical order. † New engagements include significant gains from the same previous auditor, often an indication of a merger or other change in firm structure, or that some of the new engagements have a corporate affiliation, as with Prager Metis picking up a significant number of clients from AMC Auditing.

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.

For reprint and licensing requests for this article, click here.
MORE FROM ACCOUNTING TODAY