Audit Firm Monopolies

Financial Audits

Whilst it's quite well known that a current issue facing the audit profession and to an extent investors, is the monopolistic power held by the big four. (KPMG, PwC, Deloitte, EY).

I believe there are solutions which would result in beneficial results for all.

It's important to highlight here that the problem with the above is the ethical considerations facing both clients and smaller audit firms such as lack of competition, implications of another audit scandal and the fact that as more power is harnessed, the more these smaller firms lose their experience and skills in key engagements such as transnational audits.

Although I'm not against the current audit climate, I believe the UK government should act.

My proposals are to affiliate these big four with smaller firms whereby both could benefit from eachothers skills, resources and fairer culture.

That said, I'd love to see a merger, even if government backed, of some of the mid-tier firms. I think that would spice things up.

With the Autumn Budget later today, would it not be so much more exciting if we were to see a revamp in the audit profession?

Fingers crossed. ??