The Auditing Oligopoly & Lobbying on Accounting Standards

The US auditing industry has been characterized as an oligopoly, which has successively tightened from eight key players to four over the last 25 years. This tightening is likely to change the incentives of the surviving big auditors, with implications for their role in our market economy. The latest research proves and shows how accounting can evolve according to several concepts. This research investigates the impact of the tightening audit oligopoly on "Big Four" auditors' propensity to discuss decreased "reliability" in accounting standards proposed by the Financial Accounting Standards Board (FASB).

28
August