1. CPAs and Consultants

2. Risks Faced in Accountants’ Professional Liability Martin W. Terpstra, CPA, CFE Partner, Forensic and Litigation Services

3. The Accounting Profession The Big 4 The National Firms The Consolidators – Alternative Practice Structure The Super-Regionals The Large Local Firms The Tax Prep Firms Small Firms and Sole Practitioners

4. The Big 4 1 – Deloitte; $8.8 billion 2 – PricewaterhouseCoopers; $6.9 billion 3 – Ernst & Young; $6.9 billion 4 – KPMG; $4.8 billion These firms audit most of the Fortune billion These firms are international in scope They are now audit driven

5. The National Firms 6 – Grant Thornton; $940 million 7 – BDO Seidman; $558 million Adding many public clients, growing fast Taking many risky engagements turned away by the Big 4 Considered a merger possibility

6. The Consolidators 5 – RSM McGladrey; $1.3 billion national 8 – CBiz/MHM; $467 million scattered offices 13 – UHY; $242 million: NE, DET, STL, HOU Alternative practice structures RSM purchased AmEx TBS in October 2005 RSM is owned by H&R Block CBiZ is publically traded Few public clients, little appetite for risk Looking to buy firms to fill in the map UHY had two deals fall apart recently

7. The Super Regionals 9 – Crowe; $423 million: IL, IN, KY, MI, OH, TN 10 – BKD; $287 million: MO, KS, NB, AR, IN, KY 11 – Moss Adams; $271 million, West Coast 12 – Plante Moran; $243million: MI, IL, OH, TN 14 – Clifton; $198 million: Midwest, 15 states 15 – Virchow Krause; $182 million: WI, IL, MI, MN 16 – JH Cohn; $175 million: NJ, NY 17 – Dixon Hughes; $155 million, South 18 – Larson Allen; $140 million: MN, MO, PA, FL, AZ 19 – Reznick; $137 million: MD, VA, GA, IL, CA

8. The Large Locals New York – 18 large local firms Chicago – Blackman Kallick is the only large local left Midwest – a number of large state-wide firms Northeast – a number of large firms based in the metro areas Miami – five large firms Southeast – a number of large state-wide firms Southwest & West – a number of large local firms

9. The Tax Prep Firms H&R Block – $2.3 billion, parent corporation of RSM McGladrey Jackson Hewitt – $650 million Liberty Tax Services – $66 million, founded by John Hewitt

10. Services Offered Attest – 86% Business Valuations – 82% Litigation Services – 78% Forensics and Fraud – 77% Estates and Trusts – 74% Mergers and Acquisitions – 68% High Net Worth – 62% Cost Segregation – 54%

11. Clients Served Real Estate – 86% Manufacturing – 78% Construction – 69% A&AG Professional Services – 69% Nonprofit Organizations – 65% A&AG Pension Plans – 64% A&AG Wholesalers and Distributors – 64% Technology – 56% Healthcare – 50% A&AG Government – 40% A&AG/GASB Source: Accounting Today Top Client Categories

12. CPAs and Consultants