Time to split up the Big-4?

This article deals with a push within Scotland to break up accounting’s Big 4. This is an idea that has been brought up in the United States as well. The reasons mentioned in this article relate to perceptions that the Big 4 “oligopoly” helps contribute to poor audit quality which in turn results in more widespread accounting issues. I disagree that the Big 4 should be broken up as I do not agree that the Big 4’s large hold on the market contributes to poor audit quality. Do you feel the Big 4 has an unfair hold on the accounting market?

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.

One comment

  1. I beg to differ. On the contrary, I believe the existence of accounting's "Big-4" raises the bar for producing high quality audits. These firms are pressured to compete for clients, thus they must sell themselves on quality, knowledge and competence. Yes! The "Big-4s" may control the greater percentage of the market, but in so doing the smaller accounting firms are given a precedence to follow.

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