Big Four audit dominance under threat

Big Four audit dominance under threat

New report may lead to break up of the blue chip audit market

A new joint report by the government and the independent accounting
regulator, the Financial Reporting Council, could see the Big Four’s monopoly of
blue chip audit market loosen.

The study, to be published this week, examines the dominance of the top four
firms – PricewaterhouseCooopers, KPMG, Ernst & Young and Deloitte – and its
implications for the quality and efficiency of audits.

Smaller accounting firms have been all but shut out of the top end of
the audit market, but are eager to break in.

The report could see a major shake-up in the provision of audit work to top
plcs, the biggest since the demise of Andersen following the Enron scandal in
2002, when Andersen formed part of a dominant ‘Big Five’ top tier of firms, the
FT reported.

The Big Four audit all but one of the UK’s 100 biggest companies and 98% of
the FTSE 350.

Related Articles

PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

Audit PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

2d Alia Shoaib, Reporter
New FRC Corporate Governance Code focuses on culture and diversity

Audit New FRC Corporate Governance Code focuses on culture and diversity

3d Lucy Skoulding, Reporter
PwC ordered to pay $625.3m over failure to detect Colonial Bank fraud

Audit PwC ordered to pay $625.3m over failure to detect Colonial Bank fraud

2w Alia Shoaib, Reporter
FRC to investigate KPMG’s Conviviality audit

Audit FRC to investigate KPMG’s Conviviality audit

2w Alia Shoaib, Reporter
June news roundup with Alia Shoaib

Audit June news roundup with Alia Shoaib

3w Alia Shoaib, Reporter
FRC opens investigation into Deloitte’s audits of SIG

Audit FRC opens investigation into Deloitte’s audits of SIG

3w Alia Shoaib, Reporter
PwC auditor spent just two hours on BHS audit, says chairman

Audit PwC auditor spent just two hours on BHS audit, says chairman

4w Alia Shoaib, Reporter
FRC reports an “unacceptable deterioration” in KPMG audit quality

Audit FRC reports an “unacceptable deterioration” in KPMG audit quality

4w Alia Shoaib, Reporter