FRC issues Key Facts and Trends in the Accountancy Profession
News types: Corporate Reports, Generic Announcement, Publications
Published: 12 June 2013
The FRC has today issued its annual ‘Key Facts and Trends in the Accountancy Profession’ (PDF) report which gives key data on the accountancy profession, its member bodies and practising 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.
I am pleased, therefore, that the report reveals a profession that continues to be attractive with the number of members continuing to increase both in the UK and worldwide. It is notable however, that whilst student numbers also increased worldwide, they fell in the UK for 2012.”
Key messages:
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Total membership of accountancy bodies continues to grow steadily with growth rates for 2008-12 at 2.6% in UK and 3.5% worldwide.
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The total number of students (UK and worldwide) has risen, but there has been a 0.7% decline in student numbers in the UK in comparison to a 4% growth internationally.
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Total fee income increased in 2011-12. The increase for Big Four firms was 7.7% compared with 0.6% for others. Audit fee income has also increased by 4.9% for Big Four firms.
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There is little change in the number of listed companies audited by firms outside the Big Four.
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Non Big Four firms’ non-audit fee income to non-audit clients has increased by 5.9% in 2011-12 compared with 0.6% in 2010-11 illustrating their ability to penetrate a wider client base.
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.
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 FRC has highlighted significant trends and explained possible limitations on data. However, the report does not comment on possible reasons for particular trends, the document should instead be taken as providing context for the FRC’s work. Firms and accountancy bodies provide this information on a voluntary basis and only very few refused to do so.
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‘Key Facts and Trends’ was first published in 2002, though its contents and presentation have developed since that date. This document takes account of comments on last year’s report, providing more focused data in certain areas.