cincodias.elpais.com
Big Four Audit Fees for Ibex 35 Companies Rise 8% in 2024
In 2024, the Big Four accounting firms earned €391 million auditing Ibex 35 companies, an 8% increase from 2023, with PwC leading at €197.9 million due to a large Banco Santander contract; KPMG and EY followed, while Deloitte showed a significant 47% growth.
- Which Ibex 35 company had the most expensive audit contract in 2024, and what factors contributed to this high cost?
- PwC's significant lead is largely due to its €142 million contract with Banco Santander, renewed until 2035. KPMG audited 11 Ibex companies, while EY's client base increased with the addition of Puig. Deloitte experienced the most substantial growth (47%), partly due to gaining Grifols as a client.
- What were the total auditing fees charged by the Big Four to Ibex 35 companies in 2024, and how does this compare to previous years?
- The Big Four accounting firms (PwC, KPMG, EY, and Deloitte) increased their auditing revenue from Ibex 35 companies by 8% in 2024, reaching €391 million. PwC remained the leader with €197.9 million, followed by KPMG (€90.64 million), EY (€70.98 million), and Deloitte (€31.45 million). The increase is a continuation of a growth trend observed in previous years.
- What are the potential future implications of the observed market consolidation in the auditing sector for Ibex 35 companies and smaller audit firms?
- The shift in auditing contracts reveals changing market dynamics and strategic decisions by Ibex 35 companies. The high cost of Banco Santander's audit highlights the increasing complexity and value of these services. The continued growth of the Big Four suggests a consolidated market with limited room for smaller firms.
Cognitive Concepts
Framing Bias
The article frames the story around the financial success of the Big Four firms, highlighting their revenue growth and market share. This positive framing might downplay potential concerns related to market concentration and potential conflicts of interest. The headline (if any) would likely reinforce this focus on financial performance. The selection of details emphasizes financial figures and rankings, further reinforcing the positive narrative.
Language Bias
The language used is generally neutral, presenting facts and figures. However, phrases like "strong increase" (referring to Deloitte's growth) or descriptions such as the Banco Santander contract being "the most expensive" could be considered subtly positive or loaded. More neutral phrasing could be used, such as "significant growth" or "highest-valued contract.
Bias by Omission
The article focuses primarily on the financial performance of the Big Four accounting firms and their clients within the IBEX 35, neglecting broader economic and political contexts that might influence the market. While it mentions Ferrovial's relocation to the Netherlands, this is presented as a detail rather than an analysis of its potential implications for auditing practices. The impact of regulations on auditing fees is not discussed. Omission of discussion about the potential conflicts of interest inherent in the Big Four's dominant market share.
False Dichotomy
The article presents a somewhat simplistic view of the Big Four's success, focusing primarily on their financial growth without fully exploring potential downsides, such as potential conflicts of interest arising from their market dominance or implications for the competitiveness of the auditing market. It doesn't explore alternative models or approaches to corporate auditing.
Gender Bias
The article mentions several CEOs by name (Ana Botín, Gonzalo Sánchez, Juanjo Cano, Federico Linares, Héctor Flórez), but does not specifically highlight or analyze any gender imbalances within the Big Four firms themselves or among their clients. The language used is neutral in terms of gender.
Sustainable Development Goals
The article highlights the significant revenue growth of the Big Four accounting firms (PwC, KPMG, EY, and Deloitte) in auditing IBEX 35 companies. This indicates a positive impact on economic growth through increased professional services revenue and employment within these firms. The growth also suggests a thriving business environment in Spain.