PracticeAccounting FirmsLarge firms clean up local Audit Commission contracts

Large firms clean up local Audit Commission contracts

BDO, Grant Thornton, Mazars and Littlejohn pickup last of the Audit Commission contracts

BDO, GRANT Thornton, Mazars and Top 30 firm Littlejohn, have picked-up audit contracts for town and parish councils.

The Audit Commission announced last year it would no longer carry out audits for local governments and put them out for tender to the private sector.

The contract wins will last five years with the firms appointed this September to work on the 2012/13 accounts.

BDO and Grant Thornton have won 32% of all local contracts respectively, worth £900,000 each on an annual basis, with Littlejohn picking up 25%, £700,000 annually, and Mazars 11%, £300,000.

Chief executive of the Audit Commission, Eugene Sullivan, said: “This shows the bulk purchasing power of the Audit Commission. We have attracted very competitive bids from private audit firms, putting the money saved back into the budgets of local bodies.

“The Commission’s scale of audit fees will be fixed at these lower levels for five years. The new scale fees will be announced in May by the Commission.”

Earlier this month the large contract wins were announced with Grant Thornton taking the biggest slice of work with four contract wins, worth £41.3m a year. KPMG will pull in £23.1m from their audit wins and Ernst & Young £20m.

DA Partnership, set up as a spinoff by Audit Commission head of practice Gareth Davies, won just one large contract – worth £5m a year. As it failed to win other contracts, the partnership could not launch as an employee-owned independent firm and has become a wholly-owned subsidiary of Mazars, trading as Mazars DA. A spokesman for the Audit Commission said it did not bid for the smaller contracts.

The latest announcement completes the process of outsourcing the Audit Commissions contracts to the private sector.

Related Articles

BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

4w Emma Smith, Managing Editor
What lies in store for accountancy in 2018?

Accounting Firms What lies in store for accountancy in 2018?

3m Lucy Skoulding, Reporter
Grant Thornton grows profits while radically reshaping portfolio

Accounting Firms Grant Thornton grows profits while radically reshaping portfolio

3m Alia Shoaib, Reporter
Grant Thornton reports gender pay gap at 26.6%

Accounting Firms Grant Thornton reports gender pay gap at 26.6%

4m Alia Shoaib, Reporter
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

4m Alia Shoaib, Reporter
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

5m Alia Shoaib, Reporter
BDO promotes 1,110 people

Accounting Firms BDO promotes 1,110 people

6m Alia Shoaib, Reporter
Grant Thornton expands financial services regulatory team

Accounting Firms Grant Thornton expands financial services regulatory team

6m Austin Clark, Reporter