PwC has overtaken KPMG as the top British audit firm in terms of total audit client numbers, the latest quarterly figures from Morningstar show.

In a slow market, PwC managed to grow its business despite winning only three new clients in the third quarter, according to the Morningstar Professional Services Rankings Guide.

In terms of FTSE 100 audit clients, PwC had 42 clients, followed by KPMG with 24 and Deloitte 20. Ernst & Young took fourth spot while BDO had one client on the top listing. There was limited movement in client numbers during the second quarter of the year with the only surprise move being Asian mining conglomerate Kazakhmys to KPMG from E&Y.

The Big Four alone accounted for 98% of the overall profits from the entire market.The same pattern of PwC dominance emerged in the FTSE 100, with the firm auditing nearly twice as many companies (42) as KMPG (24).

On the small cap/fledging side, client numbers for five of the top seven auditors 'went into reverse' over the quarter, with KPMG and Deloitte showing double-digit falls. PwC's client numbers remained unchanged.

Deloitte came in ahead of the competition in terms of client profits, with Grant Thornton outperforming E&Y to take second spot. Mazars put in a strong performance rising three places to fifth, while BDO also took the fourth spot - up one from fifth.