Who Audits Broker-Dealers

Launched back in 2009, the Audit Analytics Broker-Dealer database now has nearly 16 years worth of audited annual and quarterly reports submitted to the SEC by broker- dealers. Key data points include auditor of the financial statements, assets, revenue, and contacts.

For this blog, we take a look at auditor market share. Each of the Big Four firms audit a large number of broker-dealer clients. PwC leads the way with 183 clients, followed by KPMG, Ernst & Young, and Deloitte with 152, 149 and 125 clients, respectively.

Following closely behind the Big Four is Breard & Associates, a specialized firm which audited 119 broker-dealer clients.

Other national firms in the top ten include RSM, EisnerAmper, and WithumSmith + Brown. Rounding out the top ten are regional and local auditors, Edward Richardson Jr and Ohab & Company.

Collectively, the Big Four Firms audit 16% of the total broker-dealer population. All others, around 469 audit firms, audit the remaining portion.

One might expect the Big Four percentage to be even higher, given the dominance in market share of public companies, where they Big Four collectively audit around 46% of the population.

The auditor market share of broker-dealers is radically different- with 157 firms auditing only one broker-dealer client, and 352 firms auditing five or less clients. Roughly 74% of all audit firms audit five or less broker-dealer clients.

For more information on the Audit Analytics Broker-Dealer database, please email us at info@auditanalytics.com or call (508) 476-7007.