FTSE 100 companies

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned the Chartered Institute of Internal Auditors is to update its qualifications to reflect the profession’s increasingly global stance.

IIA organization will adopt the IIA Certified Internal Auditor (CIA) certification, which develops and assesses practitioner skills and the new Qualification in Internal Audit Leadership (QIAL) From June 2015.

The IIA decided to develop the offering, which provides experienced heads of internal audit with the opportunity to gain recognition for their leadership skills and gain chartered status.

IIA’s chief executive, Ian Peters, recently declared: “Internal auditing is now a global profession, as organisations operate in increasingly internationalised and co-dependent markets around the world. This often requires internal auditors to work across borders to consistent standards. In this context, internal audit is playing an increasingly strategic role within organisations”

He also added: “it’s vital that as the demands and expectations on internal auditors grow as a result, and recognition of the value of the profession increases, we are providing qualifications which are globally recognised and which equip practitioners with all the skills they need to help their employers meet today’s challenges”

Finally, he concluded: “We have also seen the specific training needs of employers and internal auditors in all sectors change. Organisations know that internal auditors gain valuable insight and transferable skills, so often a period in internal audit is now a key part of an individual’s career progression.”

Regarding those who currently are studying, a three year transition programme will enable to switch their studies to the new qualifications and for existing qualification holders to add the new designations.

For further information, IIA has published detailed information on its website and The Institute is contacting as well all qualified and studying members to explain how the changes affect.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned “The Big Four” controlled two thirds of global accounting market share in 2014 with a combined $120.2bn in fee income. Recently published figures show that all of the Big Four have increased fee income. In 2013 Deloitte reported fee income of $32.4bn, just ahead of PwC with $32bn. EY came in third with $25.9bn, followed by KPMG with $23.4bn.

According to recent publications, Deloitte retains its lead over PwC with £22.53bn in global income. It is the first time the global accounting network has retained number one spot in consecutive years, beating rival PwC by $248m. However, Price Waterhouse Coopers, is yet to see the impact of the acquisition of global consultancy Booz & Co, which was finalised in the last few months of its 2014 financial year.

As long as the gap between the top two firms has narrowed, the gap between them and third ranked EY has been increasing – from $1.9bn in 2004 to $6.5bn in 2014. EY reported fee income of $27.3bn and fourth ranked KPMG $24.8bn in 2014. Furthermore, the gap between the Big Four and the nearest competitor, BDO, has widened by over $7bn in the past decade from $10.6bn in 2004 to $17.8bn in 2014, according to the survey of global accounting firms conducted by International Accounting Bulletin (IAB).

Altogether 52 top international accounting networks and associations earned a combined $181.7bn in fees in 2014, up 6% year-on-year. In the past few years advisory and strategic acquisitions have driven mentioned growth. Recently published report shows that since 2004 the Big Four combined have increased their advisory revenues by over $33bn while audit and accounting revenues increased by $14bn and tax work revenues by $10.2bn in the same time period. Previously mentioned M&A was one of the main drivers of growth for the largest firms, with deals such as the PwC acquisition of Booz & Co., EY’s acquisition of The Parthenon Group as well as its merger with KPMG Denmark, and KPMG’s many consultancy and analytics business acquisitions in the US and Europe.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have learned the revenues of the 20 richest football clubs in the world reached £5.2 billion in the 2013-14 season, up £669 million on the previous year according to a report recently published by Deloitte.

For the 10th year in a row, Champions League winners Real Madrid top the list. However, the Premier League continues to consolidate its position as the dominant financial force in world football, with eight clubs in the top 20 as broadcast money boosted English teams’ revenues. Among the British teams,  Manchester United have jumped back up football’s rich list and are now the second highest earning club in the world behind Real Madrid. Therefore, Manchester United jumped two places up the list as they become the second highest earning football club in the world with revenues of £433.2 million. Regarding this fact, Austin Houlihan, Senior Manager at Deloitte declared “Despite a poor on-pitch season in 2013-14, United’s commercial strategy of securing global and regional partners is delivering substantial growth,” said. He also added: “Their absence this season from European competition will be felt in next year’s Money League position, but if they can return to the Champions League in 2015-16 there is a strong possibility they could be top in two years’ time.” Some other teams of the Premier League as Manchester City, Chelsea, Arsenal and Liverpool feature in the top 10 of the Money League while Tottenham are joined in the top 20 by newcomers Newcastle and Everton.

The report also shows existing match between Real Madrid’s unprecedented 10th Champions League victory last term and their financial performance, with revenue growth of six per cent to £459.5m. Continuing in the Spanish football, their great rivals Barcelona have dropped from second to fourth this year as their revenues fell to £405.2m in 2013-14, with German giants Bayern Munich staying second with turnover of £407.7m. Following them, Paris Saint-Germain in fourth (£396.5m) come Premier League powerhouses Manchester City (£346.5m), Chelsea (£324.4m), Arsenal (£300.5m) and Liverpool (£255.8m). Is surprising that not only are there 10 Premier League clubs in the top 20, but strikingly all 20 English top flight clubs feature in the top 40 this year. According to this, Hoolihan said: “The Premier League’s new broadcast deals have translated into big revenue increases across the English top flight,” He also added: “Every Premier League club reported record revenues in 2013/14. Between them, the eight English clubs in our top 20 achieved total broadcast revenues of £0.9bn. The fact that all the clubs in the Premier League are in the top 40 is testament to the huge appeal of the league globally and also the equality of the distributions the clubs enjoy relative to their European counterparts. Finally he concluded: “Additionally, the Premier League is currently negotiating for the next cycle of media rights and further uplifts are anticipated.”

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According to Iain Moffatt, Head of Enterprise at KPMG their reasons for creating the cloud-based service was partly a response to the prospect of large tech companies entering the accountancy market and using big data to steal market share from incumbent firms, including the Big Four (KPMG, PwC, E&Y and Deloitte)

Therefore, future threats from companies like Google were a key reason for KPMG’s £40 million investment into accounting services for small and start-up businesses.

In the same way, Mr. Moffatt added in a recent interview: “When we talked about our mid-market business, we considered our competition. Obviously, we thought about firms like PwC and EY. But then we paused and asked ourselves, is that really our competition? In the next five years, are big accountancy firms going to be our competition, or is it actually going to be Google, or Amazon, or somebody else?”

He also declared “Today, our profession is all about data. The more data you have, the more powerful you are. With big data you can create more-effective KPIs, better benchmarking, and more accurate insights. That’s the secret. That’s what the future holds.”

Regarding KPMG’s deal with McLaren last November, further emphasising the firm’s focus on data acquisition and analysis, Mr. Moffatt referenced: “Our recent deal with McLaren was about harnessing their fantastic data analytical capability.”

In Mr. Moffatt’s opinion, the market in which KPMG operates is changing fundamentally. Start-ups become less interested in established brands and more focused on the quality of data supplied by their services organisations.

As a conclusion, he launched the following reflection: “Fundamentally Google is a data organisation. That’s what it sells. And what’s stopping Google becoming a provider of advice based on data analysis in the future? The only thing stopping it is that it doesn’t currently have a recognised or trusted brand in that field. But in five years’ time, that might be different. If you’re a new company, are you bothered about whether you deal with KPMG, Google, ABC, or XYZ? No, you care about what that company can do for you.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned the ACCA (Association of Chartered Certified Accountants) welcomes and approves the IAASB’s (International Auditing and Assurance Standards Board new revisions to International Auditing Standards (ISAs)

The pursued aim of the revisions to ISAs is to ensure fundamental and relevant audit matters are explained and communicated to the end user clearly and accurately.

Enhancing both transparency around the audit and innovation in audit reporting, ACCA sees this improvement in auditor’s reports as crucial to the future value of audits.

Furthermore, ACCA believes the revisions are just in time as the value of audit continues to be challenged.

Recently, Robert Stenhouse Chair of ACCA’s Global Forum for Audit and Assurance, declared: “ACCA believes audit has a very important place in society. It provides public value through increasing confidence in financial reporting. For global capital markets this facilitates the efficient allocation and use of capital. The benefits of audit are also strongly felt in the public and not for profit sectors. The new standards are consistent and clear, and above all relevant across a very wide user base”

He also added: “ACCA sees this improvement in auditor’s reports as crucial to the future value of audits”

Robert Stenhouse considers ACCA has taken a keen and proactive interest in the developments of these new auditor reporting standards. However, he warned and concluded:  “Our work does not stop here. We will continue to champion their effective implementation and encourage our members to be bold in their use of the new standards to put on display the fantastic work they do”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned that one in five FTSE-100 companies has put its audit contracts out to tender this year. As a consequence, a number of multi-million pound mandates is set to change hands during 2015 as firms react to the new rules designed to make auditors more competitive.

Following changes announced at Royal Mail, M&S, Unilever and Morrisons, among others, in the past 12 months, the rest of the biggest firms among FTSE-100 may invite auditors to pitch for work next year.

Recently, PwC has declared that 75 of the FTSE-100 firms who have tendered since October 2012 have ended up switching. Every firm has moved from one to another of the “big four”, PwC, EY, Deloitte and KPMG.

Also, smaller auditors such as BDO have picked up more tax and advisory work with blue-chip companies as these firms aim to keep their potential auditors free from conflicts of interest when they do put the contract out to tender. Due to this, BDO now works with more than 40 of the firms on the index.

As Audit international advanced recently, the Competition and Markets Authority has changed the rules for FTSE-350 companies requiring them to invite pitches for its audit contract at least once a decade. This new legislation came into effect last 1st of January.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned about the results of Audit report awards, organized by IMA, the worldwide association of accountants and financial professionals.

Three of the Big Four audited all the winning companies and the runners-up in all three categories – FTSE 100, FTSE 250 and FTSE Small Cap and AIM.

The firm which won the most mentions was KPMG. They audited three of the winning companies and five of the runners-up. Furthermore, PwC audited two winners and Deloitte audited one winner and a runner-up.

There were two awards in each category. The first award was for the most insightful audit report, which recognises the reports that give the most entity specific and enlightening information for investors to use when engaging with the audit committee.

The second was for the most innovative reports, which identifies those reports where the auditors have thought outside the box to find a way to present their findings in an engaging and readable way.

Mentioned awards were set up in the light of the introduction last year of the Financial Reporting Council’s enhanced auditor reporting rules. After the ceremony, IMA’s chief executive Daniel Godfrey declared “The success of the new audit standard is of paramount importance to the investment industry,”

He also added “Our awards are held in recognition of this alongside commending greater transparency and excellence in auditor reporting and supporting the industry’s progress.”

One of the night’s protagonist, Tony Cates as KPMG’s UK head of audit, gladly declared he was delighted with the awards which vindicated the decision to go beyond the FRC’s requirements and pilot three audit reports which included commentary from the individual audit partner on the audit findings.

In addition to that he said “This discussed qualitative matters in order to help give colour, depth, and so create a better platform for engagement between shareholders and the company”  “Those pilot reports and others have been recognised in these awards.”

Finally he concluded, “Continuing change is needed, and that is why earlier this autumn we set out a new policy of going further by reporting our audit findings where the company engages us to do so.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned of the results of a new survey conducted by Advisor Rankings that the leading audit firm PwC has become the lead AIM 100 auditor, overtaking its direct competitors after it gained three new AIM 100 clients this last quarter.

According to a quarterly report, there have been no changes in position in the full AIM rankings, which, the report says, is due to a usual period of calm in activity in the audit sector this quarter. The relative inactivity in the AIM audit market now “stands in contrast to the main board,” the report said.

In addition, mentioned report shows that BDO has retained its dominance over the full AIM market with 155 clients, despite losing seven clients this quarter. The American audit firm Grant Thornton has also lost two clients, but retains second place in the rankings with 147 clients. KPMG has 146 clients, gaining three this quarter and PwC is in fourth place with 114 clients. Deloitte is in fifth place among the main audit firms with 85 clients, followed by EY (68, down from 70), Baker Tilly (55, down from 59), Crowe Clark Whitehill (40, up from 39), UHY Hacker Young (32, up from 30) and Nexia Smith and Williamson (25).

As a conclusion the report shows that PwC’s success has been in the face of challenging audit market conditions. It considered, “The gains achieved through the period meant that the aggregate value of PwC’s stable was only down slightly on the previous quarter despite the general audit market decline.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International has learned that for Auditors and best practices, rotation is key!  For publicly traded companies, the audit process is among the more arduous and mundane of all corporate responsibilities.

It claims the precious time spent and attention of senior management and executives and is neither strategic nor contributory to company profits or shareholder value. And in the Sarbanes-Oxley era of more regulated corporate governance—in the wake of Enron, MCI WorldCom, and other such scandals—the audit process has only grown in intensity, prompting an exodus of senior in-house accounting and financial executives to private companies.

But despite the enhanced governance requirements of the last ten years, audit quality continues to slip. The Public Company Accounting Oversight Board is still finding deficiencies in audits conducted by the Big Four. In a recent Wall Street Journal article, the chief auditor at the PCAOB stated, “When we look at an audit, the rate of failure has been in a range of around 35 to 40 percent.”

 

Competition in the audit market has all but disappeared. In the U.K., the Big Four accounting firms hold the auditing business for 99 percent of FTSE 100 companies. In the U.S., those same four companies collected over 94 percent of all auditing fees in 2010.

In the interests of improving audit quality, preventing against early 2000s-style corporate scandals and protecting the investor, regulatory authorities across the globe are looking at both the audit market and the relationship between company and auditor and are putting in place mandatory audit rotation. That is, a legal requirement that companies put up for tender and potentially change their auditor every number of years. The EU has already enacted such regulation, requiring most companies to put their audit business up for bid every 10 years. And there is a growing clamor for similar regulation in the U.S.

We will have to wait and see if this regulation improves the working life of internal auditors.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com