International Accounting Bulletin | Page 12

SUrvey World Survey 2014 International Accounting Bulletin and will continue to make headlines in the coming years. The reason behind the trend, Nusbaum of Grant Thornton International says, is that mid-size and smaller business are becoming much more international and have needs in different countries where their auditors will have to service. after the deal was first announced. Pr ior to K PMG ’s acqu isit ion , EY acquired Terco, a former Grant Thornton International member firm in Brazil, which meant two of the largest mid-tier firms were bought out in the space of a year by two of the Big Four firms, which raised question on the effect of the concentration of the audit market. Despite validating the acquisition, the CADE imposed some restrictions on KPMG Brazil’s future acquisitions for the next four years. The CADE also issued some recommendation for the rest of the Big Four. All interviewed firm leaders agreed the trend of consolidation is far from over Fewer mid-tier networks But interviewed firm leaders remain divided on whether or not this consolidation trend will see the end of one of the major mid-tier brands in the market. “Within the next five years there will only be two or three substantial mid-tier networks globally,” BDO’s Van Roekel predicts. Mazars’ Castagnac believes that “midtier major players such as Grant Thornton, BDO and Mazars will certainly not disappear”. For the others he says it could happen but “certainly not in the short term”. Baker Tilly International’s Barnes shares this analysis. “There have been mergers between smaller global organisations before,” he says. “But not in this mid-tier region and it’s a jolly difficult thing to think how one would do that.” Audit Despite Deloitte overtaking PwC to become the largest firm by revenue over the past 12 months, PwC’s audit and accounting ser- ■■ WORLD SURVEY 2014 Networks: staff data Rank 2013 Name Total staff 2013 2012 Deloitte* 202,885 193,359 2 PwC* 184,235 180,529 3 EY* 174,808 167,225 4 KPMG* 155,180 152,390 5 BDO 56,389 54,933 Partners Growth (%) 2013 Professional staff 2012 Administrative staff 2013 2012 2013 157,505 148,947 Offices 2012 2013 2012 NETWORKS 1 5 10,189 9,948 35,192 34,464 677 655 2 9,597 9,359 143,111 139,723 31,527 31,447 776 776 5 9,468 9,129 130,569 124,735 34,771 33,361 700 726 2 8,664 8,624 119,675 117,190 26,841 26,576 700 700 3 4,908 4,778 43,461 41,979 8,020 8,176 1,264 1,204 6 Grant Thornton International 38,543 35,809 8 2,907 2,839 28,735 26,987 6,901 5,983 696 638 7 RSM International* 31,896 32,757 –3 2,871 3,126 23,657 23,947 5,368 5,684 678 702 8 Crowe Horwath International 29,414 29,239 1 3,352 3,335 21,363 21,335 4,699 4,569 684 671 9 Moore Stephens International* 27,081 21,224 28 2,636 2,312 19,595 15,273 4,850 3,639 667 624 10 Baker Tilly International* 26,846 25,667 5 2,754 2,650 19,754 18,986 4,339 4,031 738 672 11 Nexia International* 23,131 22,161 4 2,739 2,600 15,774 15,261 4,618 4,300 604 581 12 PKF International 22,543 21,978 3 2,660 2,276 15,383 16,681 4,500 3,021 385 440 13 Kreston International* 20,090 21,009 –4 1,504 1,448 15,645 16,303 2,941 3,258 623 640 14 HLB International* 16,474 15,811 4 1,701 1,754 12,090 10,878 2,683 3,179 455 479 15 Mazars* 13,746 13,161 4 742 727 11 047 10,413 1,957 2,021 250 236 16 UHY International* 7,661 7,134 7 789 768 5,693 5,210 1,179 1,156 275 266 17 Russell Bedford International* 5,198 4,967 5 613 549 3,750 3,751 835 667 241 240 18 ECOVIS International* 4,610 4,326 7 657 597 3,425 3,295 528 434 262 263 19 Shinewing CPA* 4,500 - - 150 - - - - - 24 25 20 UC&CS América* 2,075 2,196 –6 213 170 1,533 1,635 329 391 126 146 21 SMS Latinoamérica* 1,913 1,873 2 167 162 1,597 1,571 149 140 48 40 22 Reanda International 1,882 2,195 –14 105 109 1,549 1,829 228 257 70 42 23 TGS Global* 1,852 - - 152 - 1,463 - 237 - 141 - 24 IECnet* 1,682 1,418 19 213 219 1,164 977 305 222 124 118 25 Auren* 1,285 1,314 –2 190 191 998 1,024 97 99 46 45 1,055,919 1,012,675 0 69,941 67,670 787,489 767,930 183,094 177,075 11,254 10,929 Totals Notes: *Disclaimer = Only data from the exclusive member firms within the network or association is included. Data relating to correspondent and non-exclusive member firms is not included Source: International Accounting Bulletin 10 y January 2014 www.InternationalAccountingBulletin.com