ABSTRACT
Disruption in the audit market is often equated with the break-up of the Big Four. One of the reasons is that competition improves audit quality. Our research concluded that audit quality is a function of competition and a number of exogenous variables. Hence quality axiom 3: audit quality has a positive relationship with competition and periods of turbulence and disruption strengthen this relationship. The debate over the FRC’s role is discussed and possible recommendations by the Kingman Review explored. Yet, the expansion of the Big Four auditors’ responsibilities are being discussed in relation to the narrative sections and/or the whole annual report. Finally, question of independence is explored, and the cosiness of the relationship between Big Four auditors and their clients.
