Auditing, consulting, and audit market concentration

Bleibtreu, Christopher; Stefani, Ulrike

doi:10.1007/s11573-012-0597-5

Cited by 9 publications

(7 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The 2010 European Commission report predicts that the collapse of one of the Big 4 large audit firms could potentially impair the stability of the financial system [28]. The investigation on the structure of the public audit service market can provide evidence to the audit market regulators whether the market need further market regulation to promote competitiveness.…”

Section: Discussion Of Results and Conclusionmentioning

confidence: 99%

“…and large companies and audit services for small and medium-sized companies [27]. Large audit firms have more incentives to attract large clients segment due to the higher fixed costs and audit planning costs compared to smaller audit firms [28]. Big N auditors also invest more in technology, staff training and support facilities [29]; which allow them to perform more efficient audit for larger and more complex clients.…”

Section: Audit Market Pricing Competitiveness: Big N Audit Fee Premiumentioning

confidence: 99%

See 1 more Smart Citation

Big N and Non-Big N Audit Pricing Competitiveness in Japan during Transition from Big 4 to Big 3 Period

Frendy¹

2018

OJAcct

View full text Add to dashboard Cite

The 2006 dissolution of PwC ChuoAoyama significantly changed market share composition of Japanese audit firms which marked the transition from Big 4 period to Big 3 period. This study aims to investigate audit market pricing competitiveness between Big N and non-Big N auditors using a sample of Japanese firms listed in the First Section of Tokyo Stock Exchange during the transition from Big 4 period (2004)(2005) to Big 3 period (2006)(2007)(2008)(2009)(2010)(2011). This paper analyzes audit market pricing competitiveness between Big N and non-Big N auditors by employing panel fixed effects multivariate regression with audit fee as the dependent variable and interaction between audit fee premium and client segment size as variable of interest while controlling for other variables affecting audit fee. The empirical results indicate a non-competitive audit pricing market between Big N and non-Big N auditors where Big N auditors earn increasingly higher audit fee as client segment size becomes larger.

show abstract

Section: Discussion Of Results and Conclusionmentioning

confidence: 99%

Section: Audit Market Pricing Competitiveness: Big N Audit Fee Premiumentioning

confidence: 99%

Big N and Non-Big N Audit Pricing Competitiveness in Japan during Transition from Big 4 to Big 3 Period

Frendy¹

2018

OJAcct

View full text Add to dashboard Cite

show abstract

“…Lastly, Bleibtreu and Stefani [2012] and Wu [2006] also analyze the interactions between the audit market and the NAS market. Bleibtreu and Stefani [2012] study the interactions between NAS restrictions as a measure intended to improve auditor independence and audit market concentration.…”

Section: Contribution and Related Literaturementioning

confidence: 99%

How Is the Audit Market Affected by Characteristics of the Nonaudit Services Market?

Friedman

Mahieux

2021

J of Accounting Research

View full text Add to dashboard Cite

How can features of the markets for audit and nonaudit services (NAS) affect an audit firm's incentives to invest in audit quality, average audit quality, and social welfare? We address these questions in a model focusing on competition in both audit and NAS markets. We show that, when audit and NAS demand are positively correlated, prohibiting auditors from providing NAS to audit clients leads to higher investments in audit quality, but can decrease average audit quality if marginal clients switch to lower quality auditors. The effect on social welfare can be positive or negative, depending on the distribution of clients' service demands. General bans on auditor provision of NAS can, via similar channels, increase or decrease audit quality and social welfare. Overall, our findings suggest a more nuanced view of how regulating an auditor's provision of NAS might affect audit quality and social welfare,

show abstract

“…Another important aspect is the structure of the audit market, specifically market concentration. Where EC () intends to decrease audit market concentration and strengthen independence by prohibiting the provision of certain nonaudit services, Bleibtreu and Stefani () have shown that prohibition can have the opposite result, depending on both the cost structure and the level of competition between large and small audit firms.…”

Section: Prior Research and Development Of Hypothesesmentioning

confidence: 99%

Auditor‐provided nonaudit services: Post‐EU‐regulation evidence from Denmark

2018

View full text Add to dashboard Cite

This survey study focuses on the relationship between the simultaneous provision of audit and nonaudit services and auditor independence‐in‐appearance as perceived by Danish stakeholders. Thereby, the perceived usefulness of the new EU public‐interest entity regulation and audit directive is evaluated. Our findings indicate that the joint provision of nonaudit and audit services is negatively associated with perceived auditor independence. However, this differs according to the type of stakeholder group. Many individual services, even those not on the EU blacklist, are regarded as problematic. Nevertheless, the relation to independence‐in‐appearance differs by type of service. The EU cap on nonaudit services fees seems to be too high. The separation between audit firms' staff that provides auditing services and staff that provides nonaudit services, and an approval of nonaudit services by the audit committee, are not regarded as helpful in enhancing auditor independence. Finally, respondents see a need to expand the strict EU regulations for audits of public‐interest entities to audits of large non‐public‐interest entities.

show abstract

Auditing, consulting, and audit market concentration

Cited by 9 publications

References 34 publications

Big N and Non-Big N Audit Pricing Competitiveness in Japan during Transition from Big 4 to Big 3 Period

Big N and Non-Big N Audit Pricing Competitiveness in Japan during Transition from Big 4 to Big 3 Period

How Is the Audit Market Affected by Characteristics of the Nonaudit Services Market?

Auditor‐provided nonaudit services: Post‐EU‐regulation evidence from Denmark

Contact Info

Product

Resources

About