Should Big-4 Auditors Get Paid Overtime?

Francine McKenna wrote a phenomenal post on Big-4 Overtime.  She evaluates the PwC lawsuit in California.  She compares the firms’ justification for not paying auditors against the PCAOB standards. They don’t seem to match.

The auditing business model, in essence, sells professional hours at a profit.  Switching to an overtime model should, in fact, help the audit firms, because it would create a more flexible cost structure.  Fixed costs would decrease, and variable costs would increase.


About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

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