{"id":1294,"date":"2020-11-02T20:29:55","date_gmt":"2020-11-02T19:29:55","guid":{"rendered":"https:\/\/eaa-online.org\/arc\/blog\/blog\/who-audits-public-companies-market-share-spain\/"},"modified":"2020-11-02T20:29:55","modified_gmt":"2020-11-02T19:29:55","slug":"who-audits-public-companies-market-share-spain","status":"publish","type":"post","link":"https:\/\/eaa-online.org\/arc\/blog\/2020\/11\/02\/who-audits-public-companies-market-share-spain\/","title":{"rendered":"Who Audits Public Companies \u2013 Market Share in Spain"},"content":{"rendered":"

This analysis was originally posted by Audit Analytics<\/a>.<\/p>\n

There is a highly concentrated audit market among the companies listed on the Continuous Market of the Bolsas y Mercados Españoles (BME<\/a>) in Spain. Sixteen accounting firms were engaged by 131 companies headquartered in Spain at the end of 2019, with the Big Four accounting for 85% of the market share. Capturing just 2% of the market each are Grant Thornton, BDO, and Luis Caruana & Asociados. The remaining nine firms audit just one percent of the market each. Four companies have a joint audit and engage two auditors each.<\/p>\n

Among the Big Four, the market is shared relatively evenly, with PwC and EY auditing 31 companies each, followed by Deloitte with 27 and KPMG with 26. <\/p>\n

Audit Analytics tracks the Continuous Market which includes the three top market cap inde<\/a>x<\/a>es <\/a>– IBEX 35, IBEX Medium Cap, and IBEX Small Cap.<\/p>\n

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\n\t\t\"2019<\/a><\/figure>\n<\/div>\n

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\n\tIBEX 35<\/h2>\n

PwC leads the Big Four on the IBEX 35 with 11 engagements, followed by KPMG with nine, and Deloitte and EY with seven each. The market cap of the IBEX 35 companies is distributed in the same order, ranging from PwC, who audits companies worth almost €160 billion to EY, who is responsible for companies with a combined market cap of €113 billion.<\/p>\n

Three companies on the IBEX 35 have announced auditor changes for 2020 and 2021. Bankia SA and International Consolidated Airlines Group SA are changing from EY to KPMG and Ferrovial is changing from Deloitte to EY. In 2020, KPMG will tie PwC at the top with 11 engagements each, while EY and Deloitte will each have six. <\/p>\n

\n\tIBEX Medium Cap<\/h2>\n

On the IBEX Medium Cap index, PwC and Deloitte have the most audit engagements at eight and seven, respectively, followed by EY with four and KPMG with three engagements. PwC is responsible for over €16 billion in market cap, while KPMG accounts for just €5 billion.<\/p>\n

Due to auditor changes in 2020, KPMG and Deloitte will lose one client each to EY. The new makeup of the mid cap index will still be led by PwC at 32% with Deloitte and EY tied with 27% each, while KPMG will have only two clients, or 9% of the market.<\/p>\n

\n\tIBEX Small Cap<\/h2>\n

Deloitte is the top auditor for the small cap index, auditing nine companies, followed by EY with eight, PwC with six, and KPMG with five engagements each. The total market cap of the companies on the IBEX Small Cap is €14 billion. Audit Analytics has recorded only one auditor change so far on the Small Cap – Obrascon Huarte Lain SA will change from Deloitte to EY.<\/p>\n

Continuous Market<\/strong><\/p>\n

The Big Four hold the bulk of the market share among the remaining firms that audit the Continuous Market of the BME. The top accounting firm is EY, who audits 24% of the companies. Next is KPMG (18%), PwC (12%), and Deloitte (8%). There are 12 other firms who audit listed companies in Spain. Grant Thornton, BDO, and Luis Caruana & Asociados audit 6%, or three companies each. Moore Stephens and Crowe audit two companies, followed by seven firms who audit the remaining companies. The total market cap of the remaining 49 companies is just over €14 billion.<\/p>\n

\n\tSpain’s Implementation of Audit Reform<\/h2>\n

Spain implemented EU Audit Reform for Public Interest Entities (PIEs) following Directive 2014\/56\/EU<\/a> and Regulation (EU) 537\/2014<\/a> of the European Parliament which took effect in June 2016.<\/p>\n

As permitted, Spain modified the regulation around auditor appointment and duration as follows:<\/p>\n

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