Big 5 Auditors handle nearly every 2 out of 3 Nifty500 Companies
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Out of the Nifty500 companies, auditor details were not available for 2 companies.
In terms of all companies whose equity shares were listed on NSE (main board) as on 31st March 2023, the Indian Big 5 audit firms handled 551 assignments of 1,869 companies (for which auditor details were available for 2022-23) or 29.48% of the total, the report said.
The top 10 audit firms accounted for audits of as many as 707 companies or 38% of the total. Leading the league table was the EY Group with 146 companies, followed by KPMG Group (136), Deloitte Group (124), Walker Chandiok (85), and PWC (65)
On an overall basis in FY23, as many as 809 audit firms audited the 1,869 companies. On average, an audit firm audited 2.31 companies in 2022-23, up from 2.11 companies in 2021-22.
In terms of market capitalisation (m-cap) of companies audited, the Global Big 4 dominated with the m-cap of the companies audited by them being 57% of the total m-cap of all companies whose equity shares were listed on NSE (main board) during 2022-23. Deloitte led with 19% with KPMG at 17% and EY at 15%.
When it came to mid-term cessations of auditors, in FY23 there was a significant drop with just 16 such instances of auditors resigning as compared to 57 auditors quitting in the middle of the year before completing the full-year audit in FY22.
Auditor changes (including addition/deletion of one or more auditors for companies with joint audits), were seen in 525 companies from 2021-22 to 2022-23 on account of auditor rotation requirements, the study found.
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