FRC issues Key Facts and Trends in the Accountancy Profession
News types: Publications
Published: 10 June 2014
The information illustrates the size and shape of the accountancy profession and shows how it has evolved over recent years. It brings together information about the major audit firms and seven accountancy bodies including both those who offer audit qualifications and those who register and supervise audit firms.
Paul George, Executive Director Conduct said:
“The accountancy profession is an important component of the UK economy and accountancy expertise is relied upon by all sectors of society and all types of business. It is, therefore, important to monitor the health of the profession.
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.”
Key messages:
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Total membership of the accountancy bodies continues to grow steadily with compound growth rates for 2009-13 of 2.7% in the UK to 327,000 and 3.5% worldwide to 465,000.
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Student numbers increased in 2013 by 1.6% in the UK to 167,000 and 4.5% worldwide to 529,000. The compound annual growth rate of worldwide students was 3.4% from 2009-2013.
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UK student numbers have remained broadly static over the same period.
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Total fee income for all the firms surveyed increased in 2012-13. The increase for the Big Four firms was 3.9% compared with 2.6% for the larger firms outside the Big Four.
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Audit fee income for Big Four firms increased by 2.8% in 2012-13 as compared to a decrease of 1.7% for the larger registered firms outside the Big Four.
Notes to editors:
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The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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The report provides information on thirty two of the largest registered audit firms which collectively audit the vast majority of UK listed companies and other public interest entities. Firms provide this information on a voluntary basis and there were a few firms that declined to do so.
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Where appropriate we highlight significant trends and explain possible limitations on the data. However, we do not comment on the possible reasons for particular trends. We would also stress that it is often difficult to make comparisons between the different accountancy bodies or between audit firms. This can be for a number of reasons, such as differences in the way data is classified or in the differing regulatory arrangements.