J.D. Power and Associates Reports: Deloitte Ranks Highest in Satisfaction among Major Tax Firms

Business Wire, Nov 16, 2004

WESTLAKE VILLAGE, Calif. -- Deloitte ranks highest in satisfaction with tax firm performance, according to the J.D. Power and Associates 2004 Tax Firm Performance Study(SM) released today. E[acute accent]The study measures satisfaction with tax advisors based on responses from 885 chief financial officers (CFOs) and tax directors.

E[acute accent]Among the major tax firms, Deloitte ranks highest in satisfaction with tax firm performance due to high ratings from CFOs and tax directors in the areas of cost, ability to creatively explore alternatives, and advice and recommendations. Deloitte also ranked highest in audit firm performance among firms managing clients with $1 billion or more in revenue in the J.D. Power and Associates 2004 Audit Firm Performance Study(SM) released last week. E[acute accent]Grant Thornton, a second-tier national firm, ranks second, surpassing three of the four large-volume tax firms. Grant Thornton excels in the areas of advice and recommendations, ability to meet deadlines, and trustworthiness. Ernst & Young also performs above the industry average. E[acute accent]Although many national tax firms also provide auditing services to clients, the study finds that tax firms are not impacted by the federally mandated auditing changes associated with Sarbanes-Oxley as are auditing firms. However, this may change in the future as the Public Company Accounting Oversight Board (PCAOB) reviews the potential conflicts of interest in providing both auditing and tax services from the same firm. E[acute accent]"While Sarbanes-Oxley has had a dramatic, and in many cases negative, impact on how CFOs view the performance of their audit firms, the tax industry has so far been shielded from the heat of the new federal auditing rules," said Ron Conlin, partner at J.D. Power and Associates. "It is extremely important for each tax service firm to clearly understand the needs and concerns of their clients and prospective clients. It is easier to switch tax firms than to switch auditors." E[acute accent]Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com E[acute accent]No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com