Accounting for uncertainty: Performance is expected to be constrained in the current year

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 period...read more.

Industry Statistics & Market Size
Revenue
£5.5bn
Annual Growth 14-19
3.5%
Forecast Growth 19-24
Profit
Employment
48,811
Businesses
5,467

Industry Threats & Opportunities

  • Economic instability is expected to hamper the industry’s performance in the current year
  • A number of scandals have led to significant fines being imposed on industry operators in recent years
  • The UK’s exit from the European Union could lead to disruption in the industry’s key markets
  • Industry Report - Industry Locations Chapter

    Business activity in the industry is closely correlated to the pattern of economic activity across the United Kingdom. This is due to the fact that industry services are used by large and small business across all sectors of the economy. However, owing to London’s dominance over industry revenue distribution, the other regions’ revenue shares generally tend to be slightly lower than their establishment numbers.LondonLondon, as a major corporate and financial centre, is the main market for industry services. It is home to the head offices of many national and international companies. The lion’s share of accounting and auditing services is provided to head offices rather than other regional establishments, particularly financial audits. Lon...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
  • New legislation
  • Accounting scandals
  • 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 sector
  • Consumer business
  • IT, media and communications sector
  • Other industries
  • Manufacturing sector
  • 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
    ProfitWagesPurchasesLegal adviceOther
  • Chart: Cost Structure Benchmarking – Sector vs Accounting & Auditing

  • Basis of Competition
    Internal competitionExternal 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
    Includes:
  • 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
    Auditing
  • 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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