Big four keep firm hold of audit market
Results of the International Accounting Bulletin World Survey have shown that even with a range of regulatory changes designed to boost competition within the audit market, the 'Big Four' have managed to keep a firm grip on the accountancy industry.
The new EU rules to switch accountants at least every 10 years to boost competition – a requirement from June 2016 – do not seem to have been reflected in the financial results published by firms.
Firms have stated that the changes have created a game of 'musical chairs' among the Big Four – Deloitte, EY, KMPG and PwC –rather than helping smaller accountants to increase market share.
The survey also revealed that Deloitte has retained the top spot among the Big Four accountants, with total fees including consultancy work of $34.2 billion last year, giving it a $248 million lead over second-placed PwC.
The survey shows that the Big Four have a combined share of 66 per cent of the global accounting market and the fees gap with the biggest mid-tier firm, BDO, has widened by over $7 billion in the past decade.
Source: International Accounting Bulletin