{"id":67782,"date":"2015-02-27T18:12:58","date_gmt":"2015-02-27T18:12:58","guid":{"rendered":"http:\/\/www.goingconcern.com\/?p=67782"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T05:00:00","slug":"ey-still-bleeding-audit-clients","status":"publish","type":"post","link":"https:\/\/www.goingconcern.com\/ey-still-bleeding-audit-clients\/","title":{"rendered":"EY Still Bleeding Audit Clients"},"content":{"rendered":"<p>As mentioned this morning, BDO did pretty well last year, winning net 40 new SEC audit clients in 2014. The firm actually won a total of 54 new engagements, slightly more than 1 new client a week. That&#39;s pretty good!<\/p>\n<p>Now for bad. Really, really, really bad. Here&#39;s the table from <em>Accounting Today<\/em>, that compiled data provided by the stellar team at Audit Analytics:<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"\/wp-content\/uploads\/files\/Total2014-GainsLosses.jpg\" style=\"width: 560px; height: 191px; float: left;\" \/>Sorry, <a href=\"http:\/\/cdn.accountingtoday.com\/media\/newspics\/Total2014-GainsLosses.jpg\" target=\"_blank\">go here<\/a> if you can&#39;t stand squinting.<\/p>\n<p>EY lost 65 SEC audits last year, net loss of 43. That seems like a lot! I mean, when we <a href=\"http:\/\/www.goingconcern.com\/post\/ernst-young-lost-lot-audit-clients-last-quarter\" target=\"_blank\">reported back in Q2 of 2013 that the firm was losing<\/a> more than one client a week, that seemed like a lot, too!<\/p>\n<p>This is quite a bit worse than last year when the <a href=\"http:\/\/cdn.accountingtoday.com\/media\/newspics\/2013TotalClientGains.jpg\" target=\"_blank\">firm dropped<\/a> a net 28 clients last year.&nbsp;<\/p>\n<p>What&#39;s the dealio? Well, you may remember that the firm <a href=\"http:\/\/www.goingconcern.com\/post\/new-ey-50-billion-revenue-goal-squishy-independence-and-adios-ampersand\" target=\"_blank\">launched their 2020 initiative<\/a> a couple years back that included a revenue target of $50 billion. While <a href=\"http:\/\/www.ey.com\/GL\/en\/Newsroom\/News-releases\/News-EY-reports-2014-global-revenues-of-27-4-billion-dollars#.VPClovnF-So\" target=\"_blank\">the firm had a nice 2014<\/a>, with revenues above $27 billion, there&#39;s quite a bit of work to be done if they&#39;re to reach the $50bil mark.<\/p>\n<p>Advisory (aka consulting) and transaction services (aka consulting) were two biggest growth areas for the firm and, unless something dramatic happens, they&#39;ll be the two biggest growth areas in 2015 as well. As these service areas grow, some conflicts are bound to come up with some of the firm&#39;s audit clients. And you&#39;d have to be a damn fool to think that EY would rather keep an audit engagement over new consulting work. &nbsp;Not to say that&#39;s the primary driver of the 2014 audit client losses, but in each case, EY already has a touch point with those companies. Once that the burden of independence is gone, the firm can start proposing all kinds of fancy services without any hindrance of conflict.<\/p>\n<p>Just like <a href=\"http:\/\/www.goingconcern.com\/post\/pwc-and-deloitte-probably-dont-care-they-lost-so-many-audit-clients\" target=\"_blank\">PwC and Deloitte<\/a> (who also lost a fair number of audit clients), EY is officially going all honey badger on assurance services. And why not? They&#39;ve got a big goal they want to reach. They&#39;ll keep the shiniest audit clients and ship off the rest to, from the looks of it, BDO, GT and KPMG.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As mentioned this morning, BDO did pretty well last year, winning net 40 new SEC audit clients in 2014. The firm actually won a total of 54 new engagements, slightly more than 1 new client a week. That&#8217;s pretty good!<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-67782","post","type-post","status-publish","format-standard","hentry","category-ey"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.2 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EY Still Bleeding Audit Clients - Going Concern<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.goingconcern.com\/ey-still-bleeding-audit-clients\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EY Still Bleeding Audit Clients\" \/>\n<meta property=\"og:description\" content=\"As mentioned this morning, BDO did pretty well last year, winning net 40 new SEC audit clients in 2014. 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