Top four firms corner 26% of audit business in India
'Big 4 auditing firms’ - Deloitte, Ernest & Young Group, KPMG and Price Waterhouse Group (PwC) continue to dominate the Indian market with 26% share by volume and 30% by overall fee.
The top 10 audit firms accounted for audit of as many as 549 companies or 36% of the total. Leading the league table was the Deloitte group with 158 companies, followed by EY Group (114), KPMG Group (66) and Price Waterhouse Group (65).
PRIME Database, in a statement, said, "The Big 4, between them, handled a high 401 assignments of the total 1,519 companies, or 26 per cent of the total. Their dominance was even stronger in the Nifty-500 subset wherein they handled 234 of the 500 audits or 47% of the total."
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Deloitte led the market with audits of 158 companies in FY16 from 147 in FY15.
The company also had the highest earnings from auditor fees which was up 20.76% from the same period last year at Rs 245.65 crore in FY16.
"Auditor rotation, as mandated by law (including addition/deletion of one or more auditors for companies with joint audits), has picked up momentum. Changes were made in as many as 178 NSE-listed companies from 2014-15 to 2015-16 and in 152 companies from 2015-16 to 2016-17, said Pranav Haldea, Managing Director of PRIME Database.
He said, "From 2013-14 to 2014-15, auditor changes were seen in 171 companies, from 2012-13 to 2013-14 in 141 companies, from 2011-12 to 2012-13 in 141 companies, from 2010-11 to 2011-12 in 142 companies and from 2009-10 to 2010-11 in 141 companies."
Tenures of 99 auditors in 94 companies shall expire in 2017-18, 172 auditors in 168 companies in 2018-19, 125 auditors in 117 companies in 2019-20 and 129 auditors in 127 companies in 2020-21.