Troubled accounting firm's staff jump ship

Accounting firm Grant Thornton, which is embroiled in lawsuits involving its missing former boss, will close down its Hong Kong operation by year-end after its entire 600-plus partners and staff agreed to jump ship to its rival, BDO.

It is the biggest such raid in the city's accounting sector and will make BDO Hong Kong's largest second-tier accounting firm, with 1,100 staff and more than 70 partners serving 200 listed companies.

BDO will still be dwarfed by the Big Four - PricewaterhouseCoopers, Ernst & Young, Deloitte Touche Tohmatsu and KPMG. But it will extend its lead over smaller accounting firms with 300 people or fewer.

Albert Au Siu-cheung, chairman and chief executive of BDO, described the mass recruitment of Grant Thornton partners and staff as a 'golden opportunity'.

'The opportunity to have a massive admission of so much established accounting talent is rare. This will strengthen BDO's competitiveness in the local accounting industry,' Au said. 'This will also create a bigger mid-tier firm allowing listed companies a choice for auditing and professional services in future.'

Au said the recruitment would be completed by the end of this year, and all staff and partners would become part of BDO, while Grant Thornton would cease operation in Hong Kong. Grant Thornton's clients - including 130 listed companies audited by the firm - had been notified of the change and most agreed to make the switch to BDO, Au said.