Advantages And Disadvantages Of Auditing Business

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Introduction
Nowadays, the global accountancy is dominated by the Big Four. Those four are Deloitte, Ernst & Young, KPMG and Pricewaterhouse Coopers (PWC). They have audited all the top 100 public companies as well as the majority of the top 350 companies (119). Thus, those four auditors dominate their market across the world. Their dominance of the market raises concerns about competition and choice in the provision of a service their clients have no choice but to buy. The domination of the auditing market by the Big Four auditing firms have include it advantage and disadvantage.

Advantages
The Big Four are international in scope and employ a large number of people. They have provided more training to their staff. Auditors working in a large office have greater exposure to different clients, and therefore have more collective experience which enables them to provide higher quality audits. This will able the auditors have more opportunity to interact with different clients. Therefore, the Big Four can help the audit market to train professionals’ auditors (8). For example, the experiences auditor can work very well and can spotlight the grey area faster. This is because an auditor is forming an independent opinion whether the financial statements give a true and fair view. Such a task needs to be performed by professional audit personnel.
Moreover, the domination of the Big Four firms can standardize the business process in order to help to improve personnel efficiency and performance and protect the confidentiality in the field of auditing. Confidentiality is a significant issue in auditing for a professional auditor. Thus, as a professional auditor should secrecy the information of the business and should not be disclose a...

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...se they have little competition the product will not evolve (a).
Conclusion
As conclude, Big Four are plays a significant role in the auditing market, there have contribute the both positive and negative influence on the auditing market. The Big Four have played a positive role in the professional development and they have audited all the top 100 public companies around. However, in the past few years, there has a numerous audit failure cases happen and cause the fluctuation in the economic. Therefore, I believe that the domination of the Big Four audit firm will cause a lot of disadvantages to the audit market. As the Big Four audit dominance not best for investors and it also hurts the competition for public company audit work and result in higher prices, lower quantity and less innovation and differentiation than would be the case in a more open market.

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