The Big Four Global Auditing - Essay Example

This paper represents a review of the European Commission's Proposal to introduce audit independence reform.... This proposed reform is said to have a number of advantages in context of dealing with issues like conflict of interest and in so doing enhancing the quality of audit.... ... ... ... Conformity with the audit standards is a requirement that every corporate business organization is supposed to follow....

The paper "Audit Concentration - Lack of Competition in the Large Company Audit Market" discusses that the regulation should be stringent so that the Mid-tier audit firms should also develop themselves like the big four audit firms so that the large companies trust their audit and non-audit works.... The plan indicated that the big four companies should tender the audit report every five years which was actually tendered till then every 10 years ('Big Four Dismiss Claims They are Failing Shareholders')....

It will also have certain dues and owes, from other organizations/individuals/government and to other.... ... ... ent, respectively; all these information concerning the organisation should be properly documented in the financial report and should reflect the accurate financial position of the company on a particular date....

This paper would focus on and review two reforms proposed by the European Commission to improve the independence of the auditing profession, namely, compulsory audit rotation and limiting the fees charged by audit firms for their non-auditing services.... This paper illustrates that following the evaluation, the auditors determine the level of conformation between those declarations and the required auditing standards, and communicating their opinion through the audit report....

In case of another loss of a big four firm, the effects of a four-to-three scenario would, among other effects, erode investor confidence to an unprecedented low one from which it would take years to recover.... Power (1997, 4) defines independent auditing as the 'independent examination of and expression of opinion on, the financial statements of an enterprise'....

This work "Current Issues in External auditing" describes the current problems in external auditing and difficulties associated with audit market concentration.... Professional work standards such as International Standard on Quality Control (ISQC) 1 and International Standard on auditing (ISA) 220 were introduced in order to keep the quality of audit work.... This paper has been drafted with the intent to explore the current issues in external auditing and difficulties associated with audit market concentration....

This industry has Certified Public Accountants (CPAs) that offer a number of accounting services, for instance, designing accounting systems, auditing accounting records, developing budgets, preparing financial statements as well as providing advice on matters that relate to accounting to their clients....

Specifically, the big Eight was reduced to the big Six by the merger of Deloitte, Haskins, and Sells with Touche Ross to form Deloitte & Touche, and the merger of Ernst & Whinney with Arthur Young to form Ernst & Young.... Specifically, the big Eight was reduced to the big Six by the merger of Deloitte, Haskins, and Sells with Touche Ross to form Deloitte & Touche, and the merger of Ernst & Whinney with Arthur Young to form Ernst & Young....