Market Prominence

June 2017

BDO employs an Audit Quality Framework based on five elements of internal focus (“pillars”) unique to BDO’s CLIMB strategy. Market Prominence is one of the five elements discussed in our 2017 Approach to Audit Quality report

Achieving and maintaining market prominence for BDO means being true to our promise of being a leader for exceptional client service worldwide. We are accomplishing this by procuring top-level talent, expanding our services, and furthering our geographic reach, as well as by working with external organizations to bolster the audit profession and by offering continuing education to those charged with governance of the organizations we serve. 



Broadly Serving Global and Domestic Clients

Being part of an extensive global network of firms provides our engagement teams with access to deep knowledge of international and jurisdictional reporting complexities. With over 67,000 employees, operating in more than 1,400 offices across 158 countries, the Member Firms of BDO International comprise one of the five largest global networks of public accounting, tax, and advisory firms. As the largest member firm in the network, BDO USA contributes significant technical resources that benefit the entire network. 

In the U.S., our National Assurance Global Offerings and Support Services team provides accounting and reporting technical support to BDO USA and BDO International member firms serving clients with global operations who require assistance with various International Financial Reporting Services (IFRS) and U.S. GAAP matters, SEC filings, and cross-border transactions. These services are further complemented by cross-business-line specialty tax practices that assist with complex international tax issues and global expatriate services.  

To further professional knowledge on a global scale, our international secondment program offers eligible candidates the opportunity to live and work abroad – to submerse themselves in the business culture and share knowledge of U.S. GAAP and individual country GAAP. We currently have over 60 professionals on an inbound exchange at BDO USA and 25 professionals on an outbound exchange to BDO International member firms that in total represent approximately 25 different countries. 

Our BDO Alliance USA is among the industry’s largest associations of accounting, consulting, and professional service firms. With more than 400 independent Alliance firm locations in nearly every U.S. state, BDO offers a unique leverage model to our clients and the clients of our Alliance CPA firms and Business Resource Network (BRN) members. As a part of BDO Alliance USA, CPA member firms are top-tier local and regional practices, typically with certain areas of focus that expand upon the geographic depth and reach of BDO offices. The BRN consists of more than 70 independent firms providing a wide range of professional services other than accounting, including technology services, risk management advisory, industry-specific services, property/facility solutions, logistics, and shared services. Through this broader network, we can leverage the unique knowledge and experiences of our diverse professionals to improve the quality of our audits.

To complement the organic growth of our firm and provide additional sources for experienced talent, we continue our expansion and acquisition strategy of highly reputable professional firms, in whole or in part. During 2016 and into 2017, we completed seven major expansions, extending the breadth and depth of industry and service offerings, and adding over 480 experienced professionals and 70 partners to the BDO family in the past 18 months. Each of these transactions goes through rigorous due diligence, which helps us identify how incoming resources will improve our existing practices and capabilities. With our expanded network of professionals, we have been able to focus on certain unique aspects of auditing non-issuer companies and improve audit effectiveness and efficiency for these entities. Legacy firm technical and practice professionals provide integration support to expansion professionals, ensuring consistently high levels of service delivery and audit quality to clients both during and after the transition to BDO. 


BDO Centers of Excellence

Our goal is to work only with those clients that we can serve and serve with excellence. It is essential that we understand their capabilities, their resources, and their businesses. At the same time, we believe it is our responsibility to offer our clients access to many of the same educational resources we provide to our professionals. That is why in 2016 we launched The BDO Center for Corporate Governance and Financial Reporting, a dynamic resource for boards of directors, those charged with governance, financial executives, and reporting staff. Through the Center, BDO provides timely alerts, publications, practice aids, surveys, and tools. In addition, we make available an evolving curriculum of both live and archived primers on governance issues, as well as more in-depth examinations of governance, accounting, auditing, reporting, and regulatory matters. 

Recognizing that many of our smaller and mid-sized public company clients may face resource constraints, we are structuring our thought leadership and education with that in mind. We are furthering the Center’s reach through participation in a variety of external and in-person board and financial executive forums, including sponsoring the annual Small Cap Directors’ Forum during the NACD’s Global Board Leaders’ Summit in 2017. Throughout 2017, we will continue to host hands-on governance workshops for boards of directors and audit committees to complement other regional and local in-person events we offer to the financial executives of our clients and contacts.

In support of two of our larger industry practices, we have established centers of excellence focused on the needs and issues of our Healthcare and Nonprofit client base. In addition, the majority of our industry groups provide regular commentary, thought leadership, and programming though our BDO Insights and Events sites. 


Contributions to the Audit Profession and Regulatory Matters

Our participation in regulatory and standard-setting discussions is extensive, involving engagement at the highest levels across a wide range of bodies and groups, both domestically and internationally. Several of our partners have been members or advisors to the AICPA, the Emerging Issues Task Force (EITF), the Auditing Standards Board (ASB), and the SEC. Several of our partners have previously worked for the Internal Revenue Service (IRS), the SEC, and the FASB, while many of our professionals have served in leadership roles--as senior advisors or as members--of key organizations in the accounting profession, and many others are active members of the AICPA and state CPA societies.

BDO is an active participant of the Center for Audit Quality (CAQ) across a variety of initiatives designed to reinforce the integrity of our capital market system. Our CEO serves on the CAQ’s governing board, while many of our other partners participate in a variety of CAQ initiatives, including a broad range of accounting, auditing and reporting events and creating guidance and tools to aid such key stakeholders as investors, audit committees, academics, and management.  

Organizations in which BDO professionals actively participate include:
  • AICPA CPA Exam Task Force
  • AICPA International Practice Task Force
  • AICPA Financial Reporting Executive Committee (FinREC)
  • AICPA National Peer Review Committee and Review Board
  • AIPCA Professional Ethics Executive Committee (PEEC)
  • AICPA Technical Standards Subcommittee
  • Auditing Standards Board
  • CAQ Governing Board
  • CAQ Professional Practice Executive Committee
  • CAQ SEC Regulations Committee
  • CAQ Talent Steering Committee 
  • FASB Emerging Issues Task Force
  • Financial Accounting Standards Advisory 
  • Committee (FASAC)
  • Global Auditors Investor Dialogue
  • PCAOB Standing Advisory Group
  • Revenue Recognition Transition Advisory Group

"The audit becomes more challenging each year with new regulations and directives that must be understood and implemented by public corporations. BDO’s continual efforts to reach out and engage audit committees, along with the full board, to help educate in this ever-changing environment is much welcomed and highly appreciated by our directors."

David Beatson
Chief Executive Office, Ascent Advisors, LLC, and Audit Committee Chair of PFSweb and Board Member of Descartes Systems Group, ATL Partners, and Chair of Pilot Freight Services

"Participating as a panelist during BDO’s recent regulatory board forum expanded my perspective on a variety of accounting and reporting topics for which I and my fellow board members are accountable. The ever changing landscape impacting public companies requires continuous education, the type of education that BDO is stepping up to provide for its clients."

L. Melvin Cooper 
Audit Committee Member - Flotek Industries; Par Pacific Holdings, Inc.; and SAExploration Holdings, Inc. and Senior Vice President and Chief Financial Officer of Forbes Energy Services Ltd.

"Corporate governance isn’t one size fits all. Small-cap boards of directors face resolutely unique challenges, which require differentiated continuing education. BDO’s unrivaled focus on small-cap boardroom excellence directly benefits the constituency its clients care most about — their shareholders."

Adam J. Epstein
Founder of Third Creek Advisors & author of The Perfect Corporate Board: A Handbook for Mastering the Unique Challenges of Small-Cap Companies