ABSTRACT
This chapter explores the implications of the Big Four’s dominant position in the audit market and solutions for tackling the lack of competition. The government has officially referred the matter to the CMA. We identify possible solutions that might be suggested by the Big Four, and evaluate whether they will work. Two key concerns are: a) another big failure of similar size and impact to Carillion and b) there are simply not enough of the Big Four to complete the audit and consultancy tasks required – the ‘insufficient numbers’ problem. The chapter argues that the ‘audit-only’ split of the Big Four does bring about change leading to increased choice and competition and also explores more remote options of new entrants to the audit market including non-traditional audit firms who have the data capability like Google.
