• Register
Return to: Home > News > Advisory > FRC shows Big Four domination of FTSE 250 audit market

FRC shows Big Four domination of FTSE 250 audit market

Only seven of the UK’s FTSE 250 companies are audited by non-Big Four firms according to research conducted by the UK’s Financial Reporting Council (FRC).

The FRC’s Key facts and Trends in the Accountancy Profession collated data on accountancy bodies’ membership and regulatory activities as well as data on the statutory audit market and firms. It found that only one of the FTSE 100 is audited by a non-Big Four firm, BDO.

Deloitte has the most FTSE 250 audit clients (68), followed by PwC (66), KPMG (59), and EY (48). Of the seven remaining FTSE250, Grant Thornton has four audit clients and BDO has three.

The report has been published at a pivotal time for the UK profession, as the Big Four and other mid-tier firms are currently in discussion as to how they can increase completion in the audit market.

Gender diversity

The FRC’s publication also showed that none of the Big four firms had more than 19% of females make up their total number of principals and no more than 8% of BAME principals.

The publication, which is now in its 16th year, introduced additional diversity indicators that were not previously asked for. The indicators are ethnicity, disability, religion/belief, sexual orientation, school type attended, first generation to attend university and caring responsibilities.

Of these, three of the indicators (religion/belief, sexual orientation and caring opportunities) are not currently being recorded at any of the seven bodies which featured in the report.

Four of the seven accountancy bodies collect information on the ethnicity of their members and students with an average completion rate of 70%.

FRC executive director of audit and actuarial regulation Melanie Hind said: “The benefits of having a diverse and inclusive workforce are well documented. The FRC is planning an event on diversity later in the year at which we will discuss with, and encourage the bodies and firms, to continue collecting diversity data and look at how to attract and develop talent from a wider cross section of society.”

Top Content

    The UK: uncertain waves rule Britannia

    he UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    Spain: looking to widen demand

    As Spanish accounting professionals prepare for new audit regulations, the Paul Golden asks what they need to do individually and at firm level to maintain and increase demand for their services.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.