A US government watchdog has issued a report defending the presence of just four firms in the market, stating there is no compelling need to change the status quo immediately.

Issued by the Government Accountability Office, the report states that while most large public companies feel limited for having just he 'Big Four' to choose, from, they do no actually experience many bad effects from these choices.

The report follows widespread debate by academics, international regulators and business who have begun formal discussions to reduce concentration among audit firms, Reuters reported.

The GAO first conducted a survey on audit concentration in 2003, when it found that most large US companies would not consider hiring a firm outside of the Big Four.

The latest report confirmed Big Four dominance – as they audited 98% of US companies with annual revenues in excess of $1bn – as well as reluctance by smaller firms to audit large companies given their struggles to expand their capability.

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