Auditor Concentration: A Replication and Extension for the UK Audit Market 1991–1995 |
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Authors: | Christopher KM Pong |
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Institution: | Department of Accounting and Business Method, University of Edinburgh, Edinburgh, UK |
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Abstract: | This paper examines the issue of auditor concentration in the UK during the period from 1991 to 1995. It shows that in 1995 the Big Six held 75% of the total number of audits and collectively earned 92% of the total audit fees. There was only a small increase in auditor concentration during the five year period, resulting from companies switching from small audit firms to Big Six and newly listed companies choosing a Big Six firm. The paper also examines auditor concentration within industries. Finally, the study assesses the measurement methods most commonly used in auditor concentration studies. |
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Keywords: | auditor concentration audit market audit specialist Big Six concentration measures |
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