With eight new Securities and Exchange Commission audit clients in the third quarter of 2017, Big Four firm Deloitte Touche led among its large-firm rivals, and came in second in overall new engagements to Salt Lake City’s Sadler, Gibb Associates.
Deloitte topped the large-firm lists both in terms of new clients, with eight, and net clients with three; RSM US came in second with four new clients and two net. (see “Q3 Client Gains Losses”).
In addition to taking in the most new clients overall, Sadler Gibb also netted the most, with seven. Ten of its 11 new engagements were picked up from Minnesota-based KLJ Associates, which has apparently sold its practice, according to a client 8-k. A number of other firms picked up former KLJ clients, including Salt Lake City’s Pritchett Siler Hardy, which got three, Seattle’s Michael Gillespie Associates, which got four; and at least three other firms that picked up one a piece. (See “Net Engagement Leaders.”)
Deloitte led among new accelerated filer clients, with five wins, but fellow Big Four firm Ernst Young’s three new large accelerated files helped it take the top spot in that category. (See “Audit Leaders.”) Meanwhile, Sadler Gibb had the most new smaller reporting company clients, with nine, but tied Flushing, N.Y.-based Wei Wei Co. for new clients in the category, with five.
When it comes to the size and scale of its new engagements, Deloitte topped the league tables in only one category – audit fees, where it brought in $12.3 million in the third quarter, relatively evenly spread across a range of clients. Foreign exchange and retail currency trader Global Brokerage Inc. brought in the largest chunk, at $2.8 million, but at least five of its other engagements brought in more than a million dollars each. Ernst Young came in second in audit fees, with roughly $12 million, thanks largely to the $6.2 million from title insurance company Fidelity National Financial and $3.4 million from lumber and construction materials wholesaler GMS Inc. (See “New client leaders.”)
Those two helped Ernst take the top spot in terms of new market capitalization audited, with FNF bringing in $9.2 billion and GMS $1.5 billion, while Carrizo Oil Gas’ $2.4 billion in market cap helped round out EY’s $14.54 billion in new market cap. Deloitte came in second here, with $6.5 billion overall, roughly half of which was accounted for by infection prevention product creator Cantel Medical Corp.’s $3.1 billion.
Finally, Cleveland’s Cohen Co. led in terms of new assets audited, thanks entirely to bringing on the $33.34 billion from fund manager Baird Funds Inc. EY came in second in new assets, due primarily to Fidelity National Financial’s $14.5 billion.
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.
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