Deloitte is bullish over impact of audit probe
Big Four firm Deloitte remains unconcerned about the potential impact of the probe into audit competition on its business, after revealing a 15% jump in its revenues over the last year
Big Four firm Deloitte remains unconcerned about the potential impact of the probe into audit competition on its business, after revealing a 15% jump in its revenues over the last year
Revenues for the year ended 31 May 2006 broke the £1.5bn mark, with audit
fees rising 17.2% to £487m, and the firm has predicted that this level of growth
will continue in the near-term.
The anticipated fee increase comes despite the Financial Reporting Council
looking at ways to promote greater choice in the audit market, along with a push
from some mid-tier firms, such as Grant Thornton and BDO Stoy Hayward, to
encroach on traditional Big Four territory.
‘We remain optimistic about the outlook and market conditions for the audit
practice in the year ahead,’ said Vince Niblett, head of audit at Deloitte. ‘We
anticipate growth in line with the previous year and don’t see any reason why
this should be impacted in the short-term.’
During the last year, Deloitte won the FTSE 100 audit of Scottish Power and
increased its market share in the FTSE 350 to 23%, giving it the second largest
audit presence behind PricewaterhouseCoopers.
But the outlook in the rest of the firm is not as bright, with Deloitte chief
executive John Connolly, who earned £4.1m compared with £3.2m the year before,
warning that the buoyant period the profession has enjoyed could be coming to an
end.