ICAEW research initiative –International accountancy firms in EuropeSUSANNA DI FELICIANTONIO, HEAD OF EUROPEAN AFFAIRS

What’s it all about?

Why are we doing this?

How are we going about it?

Can you help us?

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1. What’s it all about?

A substantive piece of qualitative research

To update and enhance understanding of how the top 30 international firms across Europe function today

And how they are responding to key drivers – business demands, digitalisation, cultural shifts and regulatory requirements

Thereby providing an independent reference point

And contributing to a more informed debate amongst policy-makers, regulators and stakeholders

© ICAEW 2019

What it’s not …

An assessment of market concentration or competition

A review of the impact of tendering, rotation, non-audit service rules

An evaluation of audit quality

A study of national policy provisions (proposed or enacted)

A list of recommended (hard or soft law) measures addressed to policy-makers

© ICAEW 2019

Significant change ahead

National reform proposals,

especially in the UK

Anticipated review of the 2014

EU audit package

2. Why are we doing this?

© ICAEW 2019

© ICAEW 2019

3. How are we going about it?

▫ Scope

▫ Chapters

▫ Methodology

▫ Timeline

© ICAEW 2019

Scope

• Top 30 international firms – shorthand for accountancy networks,

associations, transnational organisations and practices

• Focus on European / cross-border arrangements

• Point-in-time snapshot – i.e. as at 1 September 2019

© ICAEW 2019

Top 30

16 Crowe

17 PrimeGlobal

18 Kreston International

19 BKR International

20 PKF International

21 AGN International

22 IAPA

23 LEA Global / Leading Edge Alliance

24 DFK International

25 MSI Global Alliance

26 Morison KSI

27 ECOVIS International

28 Russell Bedford International

29 UHY International

30 MGI Worldwide

1 PwC

2 Deloitte

3 EY

4 KPMG

5 BDO

6 Grant Thornton

7 Praxity

8 Nexia International

9 GCI

10 Mazars

11 RSM

12 HLB International

13 Baker Tilly International

14 Allinial Global

15 Moore Stephens International© ICAEW 2019

By fee income, based on International Accounting Bulletin 2019 data for Europe

© ICAEW 2019

© ICAEW 2019

STRUCTURE

Organisational structures for strategic decision-making

Legal entities for coordination and resource sharing

Arrangements for PII

Relations with wider / ‘global’ firm

GOVERNANCE

Approaches to regulatory and legal compliance

Firm culture, including ethics and diversity

Development of talent

Communications, brand and

marketing

TECHNOLOGY

Common digital platforms or standards

Data management policies

Approaches to technological risks, including cyber

Skills needs

Impact of technology on structures and ways of working

SERVICES

Policies on client engagement and management

Common methodologies (audit and other regulated services)

Investment / use of shared resources

Use of ‘integrated’ teams

Risk management and quality

control

Methodology

• Research, fieldwork and analysis carried out by ICAEW

• Intention to establish advisory group with (c.) 6 experts (independent of the

firms)

• Illustrative analysis, anonymised unless referring to publicly available

information

• Based on (a) desktop research (annual reports, transparency reports,

academic literature, etc.) and (b) qualitative interviews with senior leaders, (c)

(if necessary) with option to provide written feedback

© ICAEW 2019

Timeline

© ICAEW 2019

Q2 2019• Internal sign-off

• Engagement with ECG, EGIAN

• Conversation with European Commission

Q3 2019• Establishment of

advisory group

• Finalisation of questionnaire

• Pilot interviews

• Desktop research

Q4 2019• Desktop research

• Interviews

• Analysis / key findings

• Input from advisory group

Q1 2020• Drafting / design

• Publication

• Communications activities

Can you help us?

For instance …

• Sharing thoughts on scope

• Pointing us to publicly available information, i.e. on individual firms’ websites

• Sharing other relevant material

• Identifying appropriate contacts within firms for interviews

© ICAEW 2017

© ICAEW 2019

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