Accounting, Auditing, and Bookkeeping Services

Table of Contents

1. OVERVIEW 1

• Introduction 1
• Table 1: World Current and Future Analysis
• for Accounting Services Market - Annual Revenues in US$ Billion for the Years 2008 through 2012 1
• History and Growth 1
• Organizational Structure 2
• Regulations and Standards 3
• A Review of Big Four Auditors... 4
• Deloitte Touche Tohmatsu 4
• Ernst & Young International 4
• KPMG International 5
• PricewaterhouseCoopers 5
• Table 2: Leading Players in Global Accounting, Auditing Services Market (2008): Revenues in US$ Billion for Big Four Auditors - PricewaterhouseCoppers, Deloitte, Ernst & Young, and KPMG 6
• Table 3: Leading Players in Global Accounting, Auditing Services Market (2008): Head Quarters, Year of Incorporation, and Employee Strength for Big Four Auditors-PricewaterhouseCoppers, Deloitte, Ernst & Young, and KPMG 6
• Table 4: Leading Players in the Global Accounting, Auditing Services Market (2007): Percentage Market Share by Company - PwC, Deloitte, Ernst & Young, KPMG, and Others 6
• Table 5: Leading Accounting Firms/ Associations in Global Market (2007): Revenues in US$ Billion for BDO International, Grant Thoronton International, RSM International, Praxity, Horwath International, and Others 7
• Small and Medium Enterprises - Key Customers 7
• Competence and Professionalism 7
• Peek into Financial Accounting Applications 7
• Factors in Favor of Future Growth 8
• Influential Developments 8
• Multibook Accounting Capabilities 8
• Mashups 8
• Table 6: World Current and Future Analysis for Financial Accounting Applications Market - Annual Sales Figures in US$ Million for the Years 2008 through 2012 9
• Table 7: Leading Application Vendors in Global Financial Accounting Services Market (2005 & 2006): License and Maintenance Revenues in US$ Million for Blackbaud, DATEV eG, Infor, Intuit, McKessonHBOC, Microsoft, Oracle, Sage Group, SAP, and SunGard 9
• Table 8: Global Accounting Services Market (2007): Percentage Breakdown of Overall Fee Split by Category - Audit & Accounting, Tax, Management Consulting, and Others 9

2. THE SEGMENTS 10

• Accountancy 10
• Introduction 10
• Modern Accounting 10
• History 10
• Audit 11
• Introduction 11
• Audit Types 11
• Classifications of Auditors 12
• Bookkeeping 12
• Introduction 12
• Bookkeeper 12
• Bookkeeping Types 12
• Methods of Bookkeeping 12

3. TRENDS & ISSUES 13

• Firms Continue to Rely on Strategic Alliances and Specialized Services 13
• Demand for Client Services Impels Knowledge Management Programs 13
• Paperless Workflows - A Key Growth Strategy 13
• Firms Provide Flexible Work Environments to Offset Resource Constraints 13
• Outsourcing of Finance and Accounting Solutions Continues to Surge 13
• Regulations: The Rationale Behind Accounting and Auditing Industry 14

4. MERGERS & ACQUISITIONS 14

5. STRATEGIC CORPORATE DEVELOPMENTS 35

A REGIONAL MARKET PERSPECTIVE

1. THE UNITED STATES 39

• Overview 39
• Table 9: US Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Billion for the Years 2008 through 2012 39
• Table 10: Leading Players in the US Accounting, Auditing Services Market (2008): Percentage Market Share by Company - Deloitte & Touche USA, Ernst & Young, PricewaterhouseCoopers, KPMG, and Others 40
• Resilient Growth Despite Economic Slowdown 40
• Impelling Factors 40
• Challenges Ahead 40
• Table 11: Leading Accounting Firms/ Associations in the US (2008): Fee Data in US$ Million for Big Four Auditors - Deloitte & Touche USA, Ernst & Young, PricewaterhouseCoopers, and KPMG 41
• Table 12: Leading Accounting Firms/ Associations in the US (2008): Fee Data in US$ Million for RSM McGladrey + Gladrey & Pullen, Grant Thornton, BDO Seidman, UHY Advisors, and Rodl & Partner USA 42
• Table 13: Leading Accounting Firms/ Associations in the US (2008): Fee Data in US$ Million for Associations of Independent Firms - AGN International - North America Baker Tilly USA, BKR International, CPA Associates International, DFK International/ USA, EuroAudit International, GMN International, and Others 42
• Trends & Issues 43
• CPAs Prepare for International Accounting Standards 43
• Economic Slowdown Induces Growth of Forensic Accounting 43
• Uncertain Economy Poses Formidable Challenges to Accountants 43
• Consultation Services Overtake Auditing Services 43

2. CANADA 43

• Overview 43
• Table 14: Canadian Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 44
• Table 15: Leading Players in Canadian Accounting, Auditing Services Market (2007): Percentage Market Share by Company - Deloitte & Touche, KPMG, PricewaterhouseCoopers, Ernst & Young, and Others 44
• Canadian Auditing Industry 44
• Quick look into Multilateral Instrument 52-111 45
• Accounting Industry in the Recent Past 45
• Impending Factors 45
• Table 16: Leading Accounting Firms/ Associations in Canada (2007): Fee Data in C$ Million for Big Four Auditors - Deloitte & Touche, KPMG, PwC, and Ernst & Young 45
• Table 17: Leading Accounting Firms/ Associations in Canada (2007): Fee Data in C$ Million for Grant Thoronton Canada, BDO Dunwoody, and RSM Ritcher 46
• Table 18: Leading Accounting Firms/ Associations in Canada (2007): Fee Data in C$ Million for Associations of Independent Firms - Baker Tilly International, Collins Borrow/Praxity, DKF Canada, Nexia International, and Others 46
• Table 19: Canadian Accounting Services Market (2005 & 2006): Percentage Breakdown of Accounting Services Offered by Province - Ontario, Quebec, British Columbia, Alberta, and Others 47
• Table 20: Canadian Accounting Services Market (2005 & 2006): Percentage Breakdown of Accounting Services Offered by Type of Client - Businesses, Households and Individuals, Public and Government Institutions, and Clients Outside Canada 47
• Table 21: Distribution of Operating Revenues in the Canadian Accounting Services Market (2006): Percentage Breakdown by Industry - Professional Accounting, Bookkeeping and Payroll, and Tax Preparation 47

3. JAPAN 48

• Overview 48
• Table 22: Japanese Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 48

4. EUROPE 48

• European Finance and Accounting Outsourcing - An Overview 48
• Positive Growth for Accounting and Auditing Firms 48
• Table 23: European Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Billion for the Years 2008 through 2012 49
• Table 24: Leading Accounting and Auditing Companies in the European Market (2006): Percentage Market Share for PwC International, KPMG International, Ernst & Young, Deloitte, and Others 49

4a. BELGIUM 49

• Overview 49
• The Legal Framework of Belgium 50
• Table 25: Belgian Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 50

4b. GERMANY 51

• German F&A Market Witnessing Steady Growth 51
• Table 26: German Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 51
• Table 27: Leading Players in the German Accounting, Auditing Services Market (2007): Percentage Market Share by Company - PwC, KPMG, Ernst & Young, Deloitte Touche Tohmatsu, and Others 51
• Table 28: Leading Accounting Companies/ Associations in German Market (2007): Fee Data in € Million for Big Four Auditors - PricewaterhouseCoopers, KPMG, Ernst & Young, and Deloitte Touche Tohmatsu 52
• Table 29: Leading Accounting Companies/ Associations in German Market (2007): Fee Data in € Million for BDO Deutsche Warentreuhand, Rodl & Partner, Ecovis, and MAZARS Hemmelrath 52
• Table 30: Leading Accounting Companies/ Associations in German Market (2007): Fee Data in € Million for Associations of Independent Firms - Nexia Internationa , Grant Thornton Deustschland, Moore Stephens Deustschland, Baker Tilly Deustschland, HLB Deustschland, and Others 53
• Consolidations on the Rise in the German Market 53
• F&A Outsourcing in Germany - A Brief 53
• Table 31: German Accounting Services Market (2007): Percentage Breakdown of Overall Fee Split by Category - Audit & accounting, Tax, Management Consulting, and Others 54

4c. ITALY 54

• Italian F&A Market Exhibiting Tremendous Growth Despite Economic Instability 54
• Table 32: Italian Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 54
• Table 33: Leading Players in the Italian Accounting, Auditing Services Market (2007): Percentage Market Share by Company - KPMG Italia, PwC Italy, Ernst & Young, Deloitte, and Others 55
• Table 34: Leading Accounting Companies/ Associations in Italy (2007): Fee Data in € Million for Big Four Auditors - KPMG Italia, PricewaterhouseCoopers Italy, Ernst & Young, and Deloitte 55
• Table 35: Leading Accounting Companies/ Associations in Italy (2007): Fee Data in € Million for MAZARS, PKF International, BDO Sala Scelsi Farina Societa Di Revisione Per Azioni, Baker Tilly Consulaudit, Moore Stephens Italia, Nexia International, Fider Consult/UHY International, and RSM Italy 56
• Table 36: Leading Accounting Companies/ Associations in Italy (2007): Fee Data in € Million for Associations of Independent Firms - DITRAG/ BKR International, MSI Global Alliance, Kreston International, JHI, Polaris International, and Others 56
• Table 37: Italian Accounting Services Market (2007): Percentage Breakdown of Overall Fee Split by Category - Audit & Accounting, Tax, Management Consulting, and Others 57

4d. NORWAY 57

• Norwegian Accounting & Auditing Market 57
• Table 38: Norwegian Current and Future Analysis for Auditing Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 57

4e. RUSSIA 58

• Russian Audit Industry - Overview 58
• Table 39: Russian Current and Future Analysis for Auditing Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 58

4f. SWEDEN 58

• Market Overview 58

4g. THE UNITED KINGDOM 59

• Overview 59
• Accounting Market in the UK 59
• Table 40: UK Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Billion for the Years 2008 through 2012 59
• International Accounting Standards Board (IASB) 60
• FAO - An Upcoming Market in the United Kingdom 60

5. ASIA PACIFIC 60

5a. AUSTRALIA 60

• Australia - A Favorable Economy for SMEs 60
• Small Firms Serve Small Public Companies 60
• Table 41: Australian Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 61

5b. CHINA 61

• Chinese Market On a Consolidation Spree... 61
• Table 42: Chinese Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 62
• Table 43: Leading Players in the Chinese Accounting, Auditing Services Market (2007): Percentage Market Share by Company - PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young, KPMG, and Others 62
• Table 44: Leading Accounting Firms/Associations in China (2007): Fee Data in CNY Million for PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young, KPMG, and RSM International 62
• Table 45: Leading Accounting Firms/Associations in China (2007): Fee Data in CNY Million for Associations of Independent Firms - BDO International, HLB International, Kreston International, Baker Tilly China, Morison International, and Others 63
• Industry Impediments 63
• Table 46: Chinese Accounting Services Market (2007): Percentage Breakdown of Mid-Tier Fee Split by Category - Audit & Accounting, Tax, Management Consulting, and Others 64

5c. HONG KONG 64

• Overview 64
• Relationships with China - The Accounting Services Market 64

5d. INDIA 65

• Overview 65
• Table 47: Indian Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 65
• Table 48: Leading Accounting Firms/ Associations in India (2007): Fee Data in INR Million for PKF Sridhar & Santhanam, Lodha & Co/BDO International, and MAZARS 65
• Table 49: Leading Accounting Firms/ Associations in India (2007): Fee Data in INR Million for Associations of Independent Firms - Nexia India, RSM International, DKF International, BKR International, HLB India, and Others 66
• Transitory Turbulence 66
• Long term Challenge 66
• Migration to IFRS: Opportunity to influence Global Standards 66

6. LATIN AMERICA 67

6a. ARGENTINA 67

• An Overview of Accounting Services Market in Argentina 67
• Table 50: Argentinean Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 67
• Table 51: Leading Mid-Tier Accounting Firms/Associations in Argentina (2008): Fee Data in ARS Million for Baker Tilly Cysas, BDO Becher & Asociados, Estudio Torrent, Auditores/RSM International, Grant Thornton Argentina, Horwath Argentina, INPACT International, RP Consultora/ EuraAudit International, Schipani & Asociados/ orison International, and UHY Macho & Asociados 68
• Table 52: Leading Mid-Tier Accounting Firms/ Associations in Argentina (2008): Fee Data in ARS Million for Associations of Independent Firms - IGAF Worldwide, Kreston International, Nexia International, Praxity, JHI International, and Others 68
• Table 53: Argentinean Accounting Services Market (2008): Percentage Breakdown of Overall Fee Split by Category - Audit & Accounting, Tax, Management Consulting, and Others 69

6b. BRAZIL 69

• Overview 69
• Table 54: Brazilian Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 69
• Audit Market 70
• Congenial Regulatory and Legal Framework 70
• Table 55: Leading Accounting Firms/Associations in Brazil (2007-2008): Fee Data in BRL Million for PricewaterhouseCoopers, KPMG Auditores Independentes, Terco Grant Thornton, BDO Trevisan Auditores Independentes, Mazars, RSM Boucinhas, Campos & ContiAuditores Independentes, and Confidor/ GMN International 70
• Table 56: Leading Accounting Firms/Associations in Brazil (2007-2008): Fee Data in BRL Million for Associations of Independent Firms - Praxity, JHI, Pryor Consulting Services/DFK International, Moore Stephens, Baker Tilly Brasil, and Others 71
• Table 57: Brazilian Accounting Services Market (2007-2008): Percentage Breakdown of Overall Fee Split by Category - Audit & Accounting, Tax, Management Consulting, and Others 71

6c. MEXICO 71

• Overview 71
• The Evolution of Bank Accounting Standards 72
• Table 58: Mexican Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 72

7. THE MIDDLE EAST 73

7a. UNITED ARAB EMIRATES 73

• Overview 73
• Table 59: UAE Current and Future Analysis for Accounting Services Market - Annual Revenues in US$ Million for the Years 2008 through 2012 73
• Table 60: Leading Accounting Firms/Associations in the UAE Market (2007-2008): Fee Data in AED Million for Ernst & Young, BDO Patel & Al Saleh, Usamah Tabbarah & Co and Sajjad Haider & Co/ Nexia International, Dahman & Co/RSM International, and Al-Rubaie &Co/ Baker Tilly International 74
• Table 61: Leading Accounting Firms/ Associations in the UAE Market (2007-2008): Fee Data in AED Million for Associations of Independent Firms - PKF International, UHY Saxena, Praxity, Moore Stephens International, MSI Global Alliance, JHI International, Kreston International, Adonis Kanaan/BKR International, IGAF Worldwide, and Polaris International 74
• Stumble Stones in the Market 75
• Table 62: Accounting Services Market in theUAE (2007-2008): Percentage Breakdown of Overall Fee Split by Category - Audit & Accounting, Tax, Management Consulting, and Others 75

GLOBAL DIRECTORY