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 QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

In focus: Payroll

Providing payroll services that comply with ever-changing regulations and meet evolving employee and employer demands is no easy task. Paychex's Tom Hammond discusses common payroll considerations for CPA firms.