Revised figures: Demand is anticipated to rise as uncertainty wanes, although at a slower rate

The industry is comprised of two distinct service segments. Accounting services include the preparation of financial accounts and the generation of financial statements. Auditing services mainly involve the process of externally reviewing a company's financial statements in order to guarantee their accuracy. External audits account for approximately 58.2% of industry revenue. Industry participants also provide internal auditing services, which are mainly carried out for the benefit of management. The industry is expected to grow at a compound annual rate of 3.5% over the five years through 2018-19 to reach £5.5 billion. Growth has been supported by generally strong levels of business capital expenditure throughout the more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • An uncertain economy and tougher regulatory stances are expected to have posed challenges
  • The FRC has toughened its stance, having handed out significant sanctions in the past two years
  • Competition between the Big Four is likely to increase, to the detriment of smaller firms
  • Industry Report - Industry Key Buyers Chapter

    The Accounting and Auditing industry is characterised by a medium level of market share concentration, with the largest four players expected to account for 63.3% of industry revenue in 2018-19. Concentration is much higher for the auditing segment of the industry, and the level of concentration has been increasing for many years. In the mid-1990s, the concentration of the Big Four in the audit market was approximately 60%, increasing to 67% in 2002. Since then, the number of firms operating in this segment of the industry has continued to decline, causing the share of revenue accruing to the Big Four firms to reach approximately 83%. Currently, the Big Four accounting firms audit approximately 98% of the FTSE 350 companies, and 99 of Britain's 100 largest firms...purchase to read more.

    Additional Insights for the Accounting & Auditing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Accounting & Auditing Industry are

  • Having a good reputation
  • Having a loyal customer base
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Number of businesses in the Accounting & Auditing industry impact industry performance..

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    What's in this report

    What is the Accounting & Auditing Industry?

    Firms in this industry prepare and examine financial accounts and are responsible for the certification of their accuracy. The industry does not include bookkeeping activities (see IBISWorld report M69.202) or budgetary control activities (see IBISWorld report M70.229).

    Industry Products
  • External audit
  • Internal audit
  • Financial accounting
  • Management accounting
  • Industry Activities
  • Preparation of financial accounts
  • Examination of financial accounts
  • Certification of financial accounts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Number of businesses
  • FTSE 100
  • Mergers and acquisitions involving UK companies
  • IT and telecommunications adoption

  • Current Performance
  • Competitive reform
  • Under scrutiny
  • Technological advancement
  • Profit and people
  • Chart: Revenue Growth

  • Industry Outlook
  • Audit reforms
  • The labour market
  • Moving accounts
  • Account alterations
  • Fee increases
  • Table: Accounting & Auditing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Accounting & Auditing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Banks
  • General Insurance

  • Key Selling Industries
  • Post-Graduate Level Higher Education
  • Renting and Operating of Own or Leased Real Estate
  • Universities

  • Products & Services
  • External audit
  • Internal audit
  • Financial accounting
  • Management accounting
  • Chart: Accounting & Auditing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial services sector
  • Industrial and manufacturing sector
  • Consumer business
  • IT, media and communications sector
  • Other industries
  • Public sector
  • Chart: Major Market Segmentation for the Accounting & Auditing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Legal advice
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Accounting & Auditing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Accounting & Auditing Industry

  • Industry Globalization
    PricewaterhouseCoopers LLP, Ernst & Young LLP, Deloitte LLP, KPMG LLP,
  • Table: PricewaterhouseCoopers LLP - financial performance
  • Table: Ernst & Young LLP - financial performance
  • Table: Deloitte LLP - financial performance
  • Table: KPMG LLP - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Accounting & Auditing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Accounting & Auditing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Reviewing a company's financial operations to ensure regulatory compliance.
  • Management Accounting
  • The preparation of financial reports and information for use by an organisation's management.
  • Sarbanes-Oxley Act
  • Legislation that addresses conflicts of interest in cases where an accounting firm both audits and provides consulting services to the same client.
  • The Big Four
  • The major firms in the industry: PricewaterhouseCoopers, Deloitte, KPMG and Ernst & Young.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Accounting & Auditing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Accounting & Auditing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Accounting & Auditing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Accounting & Auditing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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