Decline in percentage of fee income for non-audit work for audit clients
News types: Generic Announcement
Published: 25 June 2012
POB PN 75
The Professional Oversight Board (POB), part of the Financial Reporting Council (FRC), has published today the tenth edition of Key Facts and Trends in the Accountancy Profession (PDF). 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.
The overall number of members in the UK continues to increase, though those accountancy bodies that have a substantial proportion of their membership outside the United Kingdom have shown the strongest growth in the overall number of members and students over recent years. Both total fee income and audit fee income for the largest registered audit firms show some recovery after last year’s declines.
John Grewe, Director of Oversight said:
The overall number of members in the UK continues to increase, though those accountancy bodies that have a substantial proportion of their membership outside the United Kingdom have shown the strongest growth in the overall number of members and students over recent years. Both total fee income and audit fee income for the largest registered audit firms show some recovery after last year’s declines.
John Grewe, Director of Oversight said:
“The analysis of fee income for the major audit firms shows that the percentage of fee income from non-audit clients has been rising, from 51% in 2006 to 55% in 2011, mirrored by a decline in the percentage of fee income from non-audit work for audit clients, from 18% in 2006 to 14% in 2011.”
Key Facts and Trends was first published in 2002, though its contents and presentation have developed since that date.
The tenth edition includes information up to 31 December 2011. We are anxious to encourage feedback from readers about any aspects of Key Facts and Trends where they think the publication might be changed and improved. A short questionnaire will be going out to FRC subscribers.
The Professional Oversight Board would welcome comments on Key Facts and Trends in the Accountancy Profession and would be grateful if users would complete their short questionnaire at:
https://www.surveymonkey.com/s/KeyFactsandTrends
The tenth edition includes information up to 31 December 2011. We are anxious to encourage feedback from readers about any aspects of Key Facts and Trends where they think the publication might be changed and improved. A short questionnaire will be going out to FRC subscribers.
The Professional Oversight Board would welcome comments on Key Facts and Trends in the Accountancy Profession and would be grateful if users would complete their short questionnaire at:
https://www.surveymonkey.com/s/KeyFactsandTrends
Notes to editors
- The Financial Reporting Council is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
- The Professional Oversight Board (POB) has the following responsibilities:
- It oversees the regulation of statutory auditors by the accountancy bodies;
- It monitors the quality of auditing of large companies;
- It oversees the regulation of the accountancy and actuarial professions by their professional bodies
- The POB is independent of the accountancy and actuarial professions. Its members have wide experience of business and the professions, the public sector, accountancy, auditing and actuarial work. The Chair is John Kellas CBE.
- Following consultation by the FRC and the Department for Business, the FRC announced plans earlier this year to streamline its governance and structure. As part of these changes the POB will cease to exist and, under legislation currently before Parliament, the powers at present delegated to the POB, together with some new powers, will be delegated to the FRC. The changes are expected to take effect on 2 July 2012.