August 29, 2005
Public Companies Seeking Smaller Firms for Audits
With a record 97% of audits of public firms done by the Big Four, there had to be a change. Recent reports from BusinessWeek indicate that some companies are seeking help from the next tier of firms. Makes sense. Most of these folks are former Big Four talent anyway and can offer better service for a better price. It never made sense that only the Big Four had the brains. So all this fear of KPMG doing a free fall means that maybe some people are coming to their senses and seeing that there are more than four firms in the world.
An excerpt on this topic, see here:
The Big Four -- PricewaterhouseCoopers, Ernst & Young, Deloitte & Touche and KPMG -- once "had a lock" on the auditing business of companies with $1 billion or more in revenue, BusinessWeek reported.
Grant Thornton, the fifth-largest accounting firm, followed by BDO Seidman, McGladrey & Pullen, and the Crowe Group are gaining more business from the largest firms, because some businesses like the added attention they get. Others are seeking a smaller invoice because the time charged for audits has gotten larger.
The Sarbanes-Oxley Act, passed following several accounting scandals in the early 2000s, has increased the number of hours required for a typical audit by more than 30 percent, the New York Times reported.
Some Big Four firms have had to drop clients because of the added time needed to satisfy the Sarbanes-Oxley Act." For the complete article, click here.
To see how your company can be successful with its Sarbanes-Oxley project, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this topic, see here:
The Big Four -- PricewaterhouseCoopers, Ernst & Young, Deloitte & Touche and KPMG -- once "had a lock" on the auditing business of companies with $1 billion or more in revenue, BusinessWeek reported.
Grant Thornton, the fifth-largest accounting firm, followed by BDO Seidman, McGladrey & Pullen, and the Crowe Group are gaining more business from the largest firms, because some businesses like the added attention they get. Others are seeking a smaller invoice because the time charged for audits has gotten larger.
The Sarbanes-Oxley Act, passed following several accounting scandals in the early 2000s, has increased the number of hours required for a typical audit by more than 30 percent, the New York Times reported.
Some Big Four firms have had to drop clients because of the added time needed to satisfy the Sarbanes-Oxley Act." For the complete article, click here.
To see how your company can be successful with its Sarbanes-Oxley project, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm).
