Deloitte replaces PwC as the top Accounting firm in the world while Crowe Horwath take the number 8 spot from Baker Tilly according to the latest global network ranking issued by International Accounting Bulletin (IAB).
PwC lost its title as the world’s biggest professional services firm despite its revenues growing by 2 percent to $35.9bn while Deloitte achieve revenue of $36.8bn , a growth of 5 percent during the past year .
It should be noted however that advisory plays a significant role in Deloitte's achievement accounting for 46 percent of total revenue while audit represent only 26 percent. PwC advisory revenue accounts for only 32 percent of total revenue, with audit contributing 43percent .
Accounting firms are facing international scrutiny of their audit and tax work which is forcing diversification of services.All the Big Four and mid-tier accountancy companies are picking up clients in new areas such as data analytics, deals advice and management consultancy.
It is important to review the revenue matrix carefully to access the future (2017 and beyond) as it is a widely held view that advisory revenue are more volatile than statutory compulsory audit. Revenue from audit services for the two top firms in the previous year (2015) compare to 2016 were :
- Deloitte Audit Revenue percentage in: 2015- 28% ,2016-26%
- PwC Audit Revenue percentage in 2015- 43%,2016-43%
The above clearly highlights Deloitte's focus on advisory instead of audit.
Crowe Horwath global revenue of 3.7bn surpass Baker Tilly revenue of 3.2 bn rewarding the global branded the number 8 position. Audit and Assurance accounts for 45% of total revenue while advisory represent 30%
Moving up a position in global ranking has been a hard won victory for Crowe Horwath. So how did we do it? Below are just a few achievements that propelled our network to a year of peak performance:
- Our calendar year ending December 2016 was marked by a year of growth across all of our regions and lines of business. Asia Pacific and Latin America grew in the double-digits. This is supported by North America’s strong growth of eight percent. Middle East and Europe continued to experience modest growth, despite operating in a challenging economic environment.
- All of our lines of business grew five percent or greater with Audit & Accounting growing five percent, Tax growing nine percent and Advisory growing six percent. Further, while many networks are experiencing a contracting of their audit and accounting business, our practice grew demonstrating Crowe Horwath’s commitment and ability to deliver cost effective, quality compliance services.
- The strength of our network, global brand and unwavering commitment to each other was evidenced in the volume and number of firms participating in cross-border client proposals and engagements.
- Eighteen new member firms including Jamaica ,were added in 2016, bringing our global reach to 129 countries across 764 offices.
The top 10 Accounting network:
1. Deloitte
2. PwC
3. EY
4. KPMG
5. BDO
6. RSM - £3.9bn (+5%)
7. Grant Thornton
8. Crowe Horwath International
9. Baker Tilly international
10. Nexia International
For more information on Crowe Horwath’s year end results, read our press release or top 10 infographic.
Crowe Horwath Jamaica (www.crowehorwath.com.jm) is one of the largest public accounting, consulting, and advisory firms in Jamaica . Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. Crowe Horwath Jamaica serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.
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