Sympathy for BDO, but not enough
Article Abstract:
BDO Stoy Hayward has just lost its long-time audit client, the Royal Automobile Club (RAC), to rival Price Waterhouse (PW). After serving as the club's auditor for 16 years, BDO failed to win the contract for 1995 when it offered the highest bid among the four accounting firms invited to take part in the RAC's audit tender. Its bid was 250,000 pounds sterling for 3,600 hours, while PW's bid was only 160,000 pounds for 3,000 hours. Nevertheless, BDO is contesting the outcome of the audit tender, accusing PW of engaging in predatory pricing to win new audit work. The firm has already written to RAC members to ask for their support and has won enough votes from them to bring the issue to public attention. PW, for its part, vehemently denies that it indulges in price cutting and contends that BDO did not heed RAC's advise to bidders to tender proposed fees of similar order of magnitude.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Static fees put pressure on partners
Article Abstract:
The downturn in the UK accountancy business is now in its third year. Since the year 1992-93, British accounting firms have been posting profits that lag behind inflation and have been reducing the number of their partners and professional staff. Even the Big Eight firms have not been spared by the slowdown in the market. In 1994-95, their collective growth was only 2.6%, their partner numbers declined by 4.5% and their professional staff number dropped by 0.4%. Some firms increased significantly but such growth was due to the effects of mergers, as in the case of Arthur Andersen, BDO Stoy Hayward and Touche Ross, which all merged with parts of Binder Hamlyn. The firm that posted the biggest organic growth, that is, growth not due to mergers, is Solomon Hare. It grew by an impressive 15% in 1994-95. The 50 biggest accountancy firms in the UK for 1994-95 are listed.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
China's profession lets the outside in
Article Abstract:
The international accountancy conference recently held in Beijing emphasized the importance of accountants in the development of the Chinese economy and in attracting international investments. Ding Pingzhun, the secretary general of the Chinese Institute of Certified Public Accountants, reminded conference participants of the enormous opportunities that China offers to the accounting profession. The Chinese entities that are required to be audited include several million collective enterprises, 200,000 foreign funded enterprises, 315,000 state-owned enterprises, and 5,000 limited liability companies. Foreign accounting firms can enter the Chinese market by setting up representative offices, forming joint ventures with Chinese partners, recruiting full member firms or applying for six-month temporary licenses.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Wastewater genomics. Antibiotic production from the ground up. Deciphering bioplastic production
- Abstracts: US interest rates: whoops of joy. A late Christmas present from the Fed
- Abstracts: Bottoms up for the pub market. Lloyds jumps to the top. Not our fault, says bank: it's hard not to conclude that Barings' fall revealed flaws in banking regulation - but the Bank manages not to
- Abstracts: Training for total quality. Gaining confidence through counselling