PracticeAccounting FirmsDeloitte ‘audit’ income soars

Deloitte 'audit' income soars

Deloitte's audit incomes climbs by more than 15% as the Big Four firm benefits from Sarbanes-Oxley and IFRS work

A 15.7% increase in ‘audit’ fees was the major contributor to revenue growth
of 8.8% in 2005 at Deloitte, as the Big Four firm cashed in on a tighter
regulatory environment and new accounting standards.

John Connolly, Deloitte’s chief executive, said the increase in audit income,
which came in at £416m and included what the firm described as ‘risk consulting
services’, was driven by the introduction of Sarbanes-Oxley regulations in
companies with US listings and IFRS assurance.

‘The increase in audit income has more to do with an increase in risk
consulting. There has been a raft of regulatory change with Sarbox and IFRS,’
Connolly said, adding that roughly half of the audit income came from ‘risk
consulting’.

The increase in audit income made it Deloitte’s biggest earner, making up
30.7% of £1.3bn revenue pot, edging out the firm’s traditional number one
revenue stream – tax advice, which brought in £386m – for the first time.

Connolly, the firm’s top earner with a pay package of £3.6m, said he hoped
the rise in audit fees was not ‘spike’ as a result of the new regulations,
indicating that the firm was aiming to grow audit income by 11% over the next
year.

Deloitte’s corporate finance business, meanwhile, grew by 11.5% to hit £241m.
Consulting earnings of £312m showed an increase of 6.2%.

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

2d Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

3d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

2w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

3w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

3w Emma Smith, Managing Editor