PracticeAuditBig Four is enough says US government watchdog

Big Four is enough says US government watchdog

Big Four still audit 98% of US firms with annual revenues of more than $1bn

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.

Further reading:

Boyle champions relaxed ownership

UK hands audit reform baton to US

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