The SEC reappointed PCAOB members Steven B. Harris and Jay D. Hanson for five-year terms.
The 12 largest auditors of SEC registrants (Ernst & Young/New York; PwC/New York; KPMG/New York; Deloitte/New York; Grant Thornton/Chicago; BDO USA/Chicago; McGladrey & Pullen/Minneapolis; MaloneBailey/Houston; Crowe Horwath/Oak Brook, Ill.; M&K/Houston; Marcum/Melville, N.Y. and De Joya Griffith & Co./Henderson, Nev.) audit more than half, 53.9%, of the SEC registrant clients, according to the 2012 SEC registrant auditor analysis by AuditAnalytics.com and ANR.
In searching for a reason to explain Ernst & Young’s Q1 2011 overall first place finish in ANR’s auditor change rankings you don’t need to look much further than the fact the firm won three engagements in excess of $1 billion in annual revenue, while only one other $1 billion pus engagement traded hands in the quarter.
ANR’s auditor change analysis is based on quarterly SEC auditor change data compiled by AuditAnalytics.com.
McGladrey &Pullen MP David Scudder is stepping down as the firm’s MP effective Apr. 30, 2011.
The firm’s Board has commenced a selection process to ensure a smooth and timely succession and transition, according to the firm.
Scudder will assist with the transition to a successor through at least June 30, 2011 and transition and he will continue to represent the Firm at regulatory and professional levels during this time.
“I don't think they will miss a beat,” said renowned accounting firm consultant Allan D. Koltin, CEO of Koltin Consulting Group/Chicago, who consults with many of the Top 200 firms “They have a lot of great leaders.”
Scudder’s departure wasn’t totally unexpected as he, while not totally responsible for the attempted secession, served as the public face for M&P’s failed attempt to separate from RSM McGladrey, the non-attest firm it is affiliated with through an alternative practice structure.
Scudder served as the firm’s MP since 2007, when he succeeded Bill Travis in the top spot. He joined M&P in 1986 as a staff accountant in the firm’s Schaumburg, Ill. office. M&P promoted Scudder to partner in 1995.
“When HRB/RSM and M&P had their issues more than a year and half ago it was just a matter of time before Dave was out as the leader,” Koltin told ANR. “He was forced to use most of his firm goodwill negotiating with HRB/RSM. Candidly, I'm surprised Dave stayed around this long as it must have been a bit awkward after they lost the arbitration hearing."
The CY2010 auditor change analysis did not answer the age-old question, is it better to buy a practice or build one, but it did demonstrate many established name firms used acquisitions to great advantage in the SEC market in 2010.
McGladrey & Pullen/Bloomington, Minn. took the top spot in the CY2010 auditor change analysis. A key component of their “win” was the July acquisition of Caturano/Boston. The firm picked up 23 engagements out of their 33 for the full year, courtesy of the transaction with the New England powerhouse, including the biggest market cap audited gain (American Science and Engineering approximately $674.1 million) and revenue audited gain (Casella Waste Systems approximately $522.33 million) of 2010 for the firm.