Link: Sarbanes-Oxley begins to bite
The firm’s research found that the amount of consultancy work referred to the Big Four from UK companies listed in the US fell by almost 30%.
These businesses, about 150 in total, are the most affected by the introduction of the Act.
Gervase MacGregor, the partner who carried out the research, said the decline was significant. ‘A drop of 27%, or £147m, in consultancy projects is very large and out of proportion to the generally flat economic conditions facing accountants over the past couple of years,’ he said.
During the same period audit fees only increased by 3%. PwC saw its fees drop from £328m to £197m – a drop of £131m or 40%.
Deloitte saw its fees drop from £62m to £48m, a 22% drop, while Ernst & Young’s revenue in this area fell from £62m to £50m (19%).
Only KPMG bucked the trend with non-audit fees jumping from £89m to £99m, a 12% jump.