Redividing the audit pie.




Bigger Pieces of the Audit Pie

Before the Big 8 mergers of 1989, no firm controlled more than 16% of the audit market for publicly traded companies. After the mergers, this percentage increased to 19%. If the proposed mergers of Ernst & Young with KPMG Peat Marwick and of Coopers & Lybrand with Price Waterhouse take place, the largest firm will handle 34% of all public company audits. Note, however, that in the last decade the share of the other firms has hardly changed.

 

 

Source: Research from Jeff L. Payne, CPA, PhD, assistant professor, University of Mississippi, and Morris H. Stocks, CPA, PhD, associate professor, University of Mississippi. Data compiled from Standard & Poor's Compustat for NYSE, Amex and NASDAQ.



SPONSORED VIDEO

How KPMG is innovating the audit

KPMG's global audit team is using cognitive technology and alliances with tech and university partners to drive audit innovation. See how.

SPONSORED REPORT

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.