Big Four more selective about audit clients
The Big Four are becoming increasingly selective in their choice of audit clients in the wake of high profile accounting scandals, new research reveals.
Over the last six months the largest firms have shed significant numbers of audit clients in the US, providing further evidence of a risk-averse approach adopted by firms in an increasingly litigious environment.
In a survey by Audit Analytics, a data collector, it showed the Big Four had lost 170 more US-listed audit clients than they had taken on.
Ernst & Young shed the most, losing 79 and taking on only 17.
PricewaterhouseCooopers came a close second shedding 73 and taking on 19. This heightened wariness by the Big Four is however good news for mid-tier firms who are picking up the work.