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Auditor Market Analysis

A forensic view of market concentration, auditor switching patterns, sector specialization, and fee benchmarking across the New Zealand charity audit market. Data reflects current auditor relationships from the Charities Services register.

Audit Firms
60
Charities Audited
622
Market HHI
966
Competitive
Top 5 Concentration
50.6%
of audited charities

Market Share by Tier

By Client Count

20.3%
51.8%
22.2%

By Total Client Revenue

44.6%
31.9%
21.9%
Big 4126 clients (20.3%)
Mid-Tier322 clients (51.8%)
Boutique138 clients (22.2%)
Other36 clients (5.8%)

Market Share by Firm

Top 20 of 60 audit firms

#FirmTierClientsClient %Client RevenueRevenue %Avg RevenueAvg Rating
1Mid-Tier15524.9%$2.6B15.5%$16.8M65.6
2Mid-Tier487.7%$1.4B8.5%$29.8M64.1
3Big 4447.1%$2.5B14.9%$56.9M65.7
4Other355.6%$239.3M1.4%$6.8M66.7
5Mid-Tier335.3%$474.0M2.8%$14.4M63.6
6Boutique335.3%$234.2M1.4%$7.1M69.9
7Mid-Tier325.1%$350.8M2.1%$11.0M67.1
8Mid-Tier304.8%$238.7M1.4%$8.0M68.3
9Big 4304.8%$3.5B20.6%$115.8M64.4
10Big 4294.7%$1.1B6.6%$38.4M60.7
11Boutique284.5%$453.8M2.7%$16.2M67.9
12Big 4233.7%$411.6M2.4%$17.9M74.5
13Mid-Tier223.5%$272.1M1.6%$12.4M67.2
14Boutique81.3%$107.8M0.6%$13.5M61.6
15Boutique81.3%$1.6B9.6%$201.6M67.5
16Boutique40.6%$205.4M1.2%$51.3M69.9
17Boutique40.6%$23.6M0.1%$5.9M58.7
18Boutique30.5%$12.1M0.1%$4.0M68.1
19Boutique20.3%$24.0M0.1%$12.0M35.3
20Boutique20.3%$43.3M0.3%$21.7M87.3

Sector Specialization Matrix

ICNPO sector vs top 8 audit firms — dominant firm highlighted per sector

Sector BDOGrant ThorntonKPMGPKFRSMSilks AuditCroweMoore MarkhamsTotal
363141416817813153
235138213615597
414343323436
108565522134
17322333225
51011113
633231113
Other4221211
Community Development31116
81135
Arts & Culture2215
Religion2114
933
7112
Animal Welfare11
Environment11
Health11

Per-Firm Sector Concentration

What % of each firm's clients are in their largest ICNPO sector — high concentration = sector-specialisation risk for the firm and its clients

Audit FirmClientsTop SectorTop Sector %Sector HHISectors ServedRisk
Audit New Zealand8262.5% (5)4,6883Concentrated
Silks Audit33351.5% (17)3,1688Concentrated
Nexia8350.0% (4)3,4384Concentrated
Crowe32246.9% (15)3,0476Specialised
PKF35345.7% (16)2,5559Specialised
Moore Markhams30343.3% (13)2,4679Specialised
BDO155340.6% (63)2,35413Specialised
RSM33239.4% (13)2,5446Specialised
EY30236.7% (11)2,8006Specialised
William Buck28335.7% (10)2,3219Specialised
Deloitte23334.8% (8)2,4766Diversified
PwC29334.5% (10)1,8439Diversified
KPMG44331.8% (14)1,73611Diversified
Grant Thornton48329.2% (14)1,84912Diversified
Baker Tilly Staples Rodway22327.3% (6)1,6538Diversified

Filtered to firms with ≥5 charity clients. High concentration in one sector can signal deep specialisation (positive) or audit-quality risk if the firm lacks cross-sector diversity (negative). Sector HHI follows the standard market-concentration convention — 10,000 = 100% in one sector, 5,000 ≈ heavily concentrated, <2,500 = diversified.

Auditor Switching Tracker

Charities that changed auditors between financial years

Total Switches Detected
0
Last 2 Years
0
Unique From-To Flows
0
CharityFromToYearRevenue
No auditor switches detected in the available data.

Fee Benchmarking by Tier

Audit fees where disclosed in annual returns

TierAvg FeeMedian FeeMinMaxFee RecordsCoverage
Big 4$55K$61K$27K$70K43.2%
Mid-Tier00.0%
Boutique$380K$380K$380K$380K10.7%
Other00.0%
Fee data is only available where charities disclose audit costs in their annual returns. Coverage varies significantly across tiers.

Concentration Risk Analysis

966
HHI Score
0 (Perfect Competition)1,5002,50010,000 (Monopoly)
Competitive
HHI below 1,500
Many firms compete — no single firm dominates.
Moderately Concentrated
HHI 1,500 – 2,500
A few firms hold significant share; limited switching options.
Highly Concentrated
HHI above 2,500
Market dominated by very few firms; potential pricing power concerns.

Based on available data, the New Zealand charity audit market appears to be competitive with an HHI of 966. The top 5 firms serve 50.6% of audited charities by client count, and the market includes 60 distinct audit firms serving 622 charities with disclosed auditor relationships.

The HHI (Herfindahl-Hirschman Index) measures market concentration by summing the squares of each firm's market share percentage. A higher HHI suggests fewer firms control more of the market, which may indicate reduced competition and limited options for charities seeking audit services.

Methodology

Data Sources

Auditor relationships are sourced from the charity_service_providers table, which is populated from Charities Services annual returns. Financial data comes from charity_financials. Charity ratings and ICNPO sector classifications are from CharityData's proprietary scoring methodology.

Market Concentration (HHI)

The Herfindahl-Hirschman Index is calculated as the sum of squared market share percentages for all firms: HHI = Σ(market_sharei)2. Each firm's market share is measured by client count as a percentage of all charities with a disclosed current auditor. HHI ranges from near 0 (many small firms) to 10,000 (one firm holds 100%).

Auditor Switching

A switch is detected when a charity has different auditor firm names across consecutive financial year records. Name normalization is applied to group variations (e.g., “PricewaterhouseCoopers” and “PwC” are treated as the same firm). Switches may reflect genuine auditor changes, firm mergers/rebranding, or data-entry variations that were not captured by normalization.

Fee Benchmarking

Audit fees are only available where charities disclose them in annual returns. Coverage is incomplete and may skew toward larger charities. Median fees are approximated by sorting available fee records and selecting the middle value.

Tier Classification

Big 4: PwC, KPMG, EY, Deloitte. Mid-Tier: Grant Thornton, BDO, Crowe, Baker Tilly Staples Rodway, RSM, Findex, Moore Markhams, Mazars, WHK. Boutique: other named firms with proper capitalization. Other: remaining entries.

Caveats

  • Name normalization covers major firms but some boutique firm variants may appear as separate entries.
  • Not all charities have a disclosed auditor — market share reflects only charities with known auditor relationships.
  • Revenue figures are from the most recent available financial year and may not correspond exactly to the audit engagement period.
  • ICNPO sector classification depends on the charity's registered sector; some charities may be misclassified or listed under a broad category.

Data sourced from Charities Services register and annual returns. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@charitydata.co.nz.

For informational purposes only. Not investment advice.