Accounting Firm Consolidation: Selected Large Public Company Views on Audit Fees, Quality, Independence, and Choice
Description: A letter report issued by the General Accounting Office with an abstract that begins "The largest accounting firms, known as the "Big 4," currently audit over 78 percent of U.S. public companies and 99 percent of public company annual sales. To address concerns raised by this concentration and as mandated by the Sarbanes-Oxley Act of 2002, on July 30, 2003, GAO issued a report entitled Public Accounting Firms: Mandated Study on Consolidation and Competition, GAO-03-864. As part of that study, GAO surveyed a random sample of 250 public companies from the Fortune 1000 list; preliminary findings were included in the July report. This supplemental report details more comprehensively the 159 responses we received through August 11, 2003, focusing on (1) the relationship of their company with their auditor of record in terms of satisfaction, tenure relationship, and services provided; (2) the effects of consolidation on audit fees, quality, and independence; and (3) the potential implications of consolidation for competition and auditor choice."
Date: September 30, 2003
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department