Non-audit clients provide largest fee growth for firms
Big Four firms continue to dominate, but other businesses' fee income recovers after five years of falls
FEES FROM WORK conducted for non-audit clients provided firms with the largest growth in income for 2012-2013, according to FRC figures.
PwC, KPMG, EY and Deloitte saw 5.8% growth in this area, while their overall growth slowed to almost half that of the previous year, at 3.9%. This compares to a total increase in fees of 7.7% in 2011-2012.
The largest firms outside of the Big Four had their best performance in the last five years in 2012-13, with a 2.6% increase in total fees, Key Facts and Trends in the Accountancy Profession revealed.
Fees from non-audit clients climbed by 5.7% for mid-sized firms, offsetting a reduction in audit fee revenue of 1.7% and a 0.5% decline in non-audit work conducted for audit clients.
The Big Four continued to dominate across all areas, with a 2.8% increase in revenue from audit work.
However, the group saw a 3.2% fall in income from non-audit work for audit clients, following debate over conflicts of interests in audit contracts.
Elsewhere in the report, the FRC found membership of accountancy bodies continued to grow, rising 2.7% from 2009 to 2013 to 327,000 members in the UK. The number of students increased by 1.6% in 2013 to 167,000 UK-based trainees.
FRC executive director for conduct Paul George said: “It is clear from the report that the profession remains attractive with the number of students and new members indicating there is a good flow of bright, young accountants coming into the profession who will be able to support our economy in the years to come.”