SGV still supreme as it continues to be the most sought-after auditing firm

By CHRISTINE JOYCE S. CASTAÑEDA

Sycip Gorres Velayo & Co. (SGV) continues to be the most sought-after auditing firm by the country’s biggest corporations in 2016.

Not only did it manage to keep its top ranking among auditors, it also increased its market share, bagging more than half of the companies in this year’s listing.

The Philippine member of Ernst & Young (EY) audited the financial statements of 513 companies that made it to the latest Top 1000 Corporations ranking, adding 74 more than in 2015 and increasing its market share to 51.3% from 43.9% in the previous year.

Meanwhile, Isla Lipana & Co. (ILC), the Philippine member of PricewaterhouseCoopers (PwC) landed on the second spot with 152 clients, adding 12 more firms from the previous edition’s 140. Consequently, its market share increased 15.2% from 14% previously.

R. G. Manabat & Co. (RGM), a member of KPMG International, followed with 98 firms or 9.8% market share, down from the last edition’s 118.

Punongbayan & Araullo, a member of Grant Thornton International, maintained its fourth spot as 45 of its clients landed on the Top 1000 list, lower by four companies from the previous year.

Completing the top five auditing firms was Reyes Tacandong & Co. — a member firm of RSM network which is administered by RSM International Ltd. — with a 2.3% market share, or 23 client firms which made it to the list. However, this was lower than the 30 firms in the previous edition.

“In the last five years, through SGV’s Talent Hub and the EY Global Delivery Services office, SGV has focused on delivery support to the audit and advisory services of the global EY organization. Our service footprint has expanded not just locally but also into the international market,” said SGV Chair and Managing Partner J. Carlitos G. Cruz.

For their part, ILC Chair and Senior Partner Alexander B. Cabrera said: “We focus not only on our core business but also help certain sectors of the industry.”

“You can help and you don’t need to earn all the time. If that helps business, or the economy in general it is still worth it. There is nothing wrong about working to improve the overall business climate and business environment because that is the environment where we play,” he added.

Meanwhile, RGM Chair and Chief Executive Officer-Designate Sharon G. Dayoan said: “Since the new management took over 10 years ago, we have been able to register a positive growth in our revenues and clientele despite economic and regulatory challenges.”

Companies in the top 20 spots retained their auditors except for Pilipinas Shell Petroleum Corp. (4th in this year’s Top 1000 list) and Toshiba Information Equipment (Philippines), Inc. (5th spot). Pilipinas Shell Petroleum Corp. was previously engaged with ILC but tapped SGV in 2016. It was the other way around for Toshiba Information Equipment (Philippines), Inc. (from SGV to ILC).

On the other hand, companies who changed auditors were 65th-placer Metro Drug, Inc. (moved to RGM from ILC), 107th-placer STMicroelectronics, Inc. (from ILC to SGV), 110th-placer Alaska Milk Corp. (from RGM to ILC), 130th-placer Shell Philippines Exploration B.V. (from ILC to SGV) and 141st-placer Pilipinas Kao, Inc. (from SGV to ILC).

The number of auditors that had five or more clients in this year’s Top 1000 dropped to 11 from the previous edition’s 13.

Christine Joyce S. Castañeda is a senior researcher of BusinessWorld’s Research Department.