Most new clients: PWC

An analysis of auditors of TSX, CNQ and TSX-Venture listed companiesfound PricewaterhouseCoopers continues to lead in terms of the number of audit clients traded on Canadian exchanges. Of the Big Six firms, it has also been most successful in attaining new clients traded on Canadian exchanges with an 18% increase from 2005 (95 new clients). The other big firms, except BDO Dunwoody, also added audit clients listed on Canadian exchanges, adding 21 to 31 clients. BDO had 12 fewer audit clients listed on Canadian exchanges last year.

Ernst & Young led the way in average market capitalization of clients.

The average market cap of E&Y clients listed on Canadian exchanges was $1.5 billion, compared with $1.4 billion for Deloitte & Touche, $935 million for PricewaterhouseCoopers, $879 million for KPMG and Grant Thornton at $168 million.

Of the 259 new audit clients listed in 2006, the big firms, excluding BDO, picked up the vast majority (71%). A few mid-sized firms also increased their share. MacKay attained 26 (up 79% from the previous year) while Manning Elliot, and Dale Matheson Carr-Hilton LaBonte increased by 23 and 13, respectively.

Another interesting finding, not shown in the chart, is that the number of firms auditing companies listed on Canadian exchanges has dropped to 236 in 2006 from 307 in 2005, a decrease of 23%.

John Tabone is CICA's manager of innovation