Open Access

Concentration on the market of audit services provided to publicly listed companies: Evidence from Poland

Jacek Gad
Jacek Gad
   | Mar 31, 2023
International Journal of Management and Economics's Cover Image
About this article
Previous Article
Next Article
Cite
Article Category: Empirical Paper
Published Online: Mar 31, 2023
Page range: 32 - 45
Received: Feb 23, 2022
Accepted: Jul 13, 2022
DOI: https://doi.org/10.2478/ijme-2022-0025
Keywords
© 2023 Jacek Gad, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

The share of auditing companies from the BIG4 group in the market of auditing services provided to public companies (by sectors, %)

No. Sector 2011 2012 2013 2014 2015 2016 2017 2018 2019
1. Finance 36.17 37.76 38.83 45.00 45.10 45.63 40.00 38.54 32.22
2. Fuel and energy 80.00 82.35 77.78 70.00 80.00 78.95 84.21 75.00 70.00
3. Chemicals and raw materials 47.50 38.64 44.19 50.00 52.27 56.82 57.50 47.50 45.71
4. Industrial and construction-assembly production 25.93 29.63 30.63 33.04 34.43 34.45 31.19 28.57 23.76
5. Consumer goods 26.23 25.00 29.51 32.79 29.03 33.33 35.71 31.48 28.00
6. Trade and services 31.82 35.56 38.30 38.30 46.81 44.00 34.78 34.04 31.11
7. Health care 35.29 41.18 38.89 43.75 42.11 45.83 40.91 36.36 36.36
8. Technologies 32.50 35.00 31.71 31.71 33.33 31.71 33.33 31.43 31.25
Kruskal–Wallis test (P-value) 0.022* 0.009** 0.020* 0.013* 0.002** 0.005** 0.003** 0.012* 0.006**
Pearson’s chi-square test of independence (P-value) 0.022* 0.009** 0.020* 0.013* 0.002** 0.005** 0.003** 0.012* 0.006**
Cramér’s V 0.176 0.188 0.178 0.184 0.209   0.197   0.214   0.197   0.207

Sectoral structure of the surveyed companies (%)

Sector name 2011 2012 2013 2014 2015 2016 2017 2018 2019
Finance 22.43 22.84 23.30 22.68 22.27 22.25 22.46 22.91 22.78
Fuel and energy 3.58 3.96 4.07 4.54 4.37 4.10 4.49 4.77 5.06
Chemicals and raw materials 9.55 10.26 9.73 9.98 9.61 9.50 9.46 9.55 8.86
Industrial and construction-assembly production 25.78 25.17 25.11 25.40 26.64 25.70 25.77 25.06 25.57
Consumer goods 14.56 13.99 13.80 13.83 13.54 13.61 13.24 12.89 12.66
Trade and services 10.50 10.49 10.63 10.66 10.26 10.80 10.87 11.22 11.39
Health care 4.06 3.96 4.07 3.63 4.15 5.18 5.20 5.25 5.57
Technologies 9.55 9.32 9.28 9.30 9.17 8.86 8.51 8.35 8.10

Share of audit firms providing audit services to only one public company in the market of audit services (%)

2011 2012 2013 2014 2015 2016 2017 2018 2019
10.74 9.56 6.56 7.71 5.90 5.83 6.38 6.68 5.06

The share of “leading” auditing companies in the market of auditing services provided to public companies (by sectors, %)

No. Sector 2011 2012 2013 2014 2015 2016 2017 2018 2019
1. Finance 65.96 60.20 63.11 66.00 66.67 66.02 63.16 62.50 60.00
2. Fuel and energy 93.33 94.12 94.44 85.00 90.00 84.21 89.47 85.00 85.00
3. Chemicals and raw materials 70.00 59.09 62.79 70.45 75.00 79.55 75.00 72.50 71.43
4. Industrial and construction-assembly production 54.63 57.41 57.66 56.25 57.38 63.87 63.30 58.10 56.44
5. Consumer goods 49.18 50.00 49.18 62.30 56.45 60.32 58.93 61.11 60.00
6. Trade and services 56.91 71.11 74.47 70.21 74.47 64.00 63.04 59.57 62.22
7. Health care 47.06 58.82 55.56 62.50 68.42 70.83 72.23 72.23 77.27
8. Technologies 57.50 62.50 51.22 53.66 52.38 53.66 55.56 51.43 53.13
Kruskal–Wallis test (P-value)   0.122   0.178   0.060   0.091 0.046*   0.142   0.212   0.175   0.059
Pearson’s chi-square test of independence (P-value)   0.121   0.177   0.059   0.090 0.045*   0.142   0.211   0.174   0.058
Cramér’s V   0.147   0.139   0.161   0.153   0.165   0.144   0.144   0.148   0.171

Share of public companies where the audit firm changed in the total number of public companies (%)

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
19.18 19.53 20.79 20.24 21.41 28.80 31.31 21.52

The structure of the market of auditing services provided to public companies (%)

No. Audit company 2011 2012 2013 2014 2015 2016 2017 2018 2019
1. Ernst & Young 10.50 10.26 9.05 9.30 10.48 11.23 14.66 13.13 12.15
2. Deloitte 9.79 10.26 11.76 12.47 12.66 13.61 12.29 8.59 6.08
3. BDO Polska 9.79 8.16 6.79 5.90 6.55 7.34 7.57 7.88 6.84
4. KPMG 8.35 7.93 8.82 10.20 9.17 8.42 6.38 6.92 6.33
5. PKF Polska 6.21 7.23 8.14 8.16 7.42 6.91 5.91 4.53 5.32
6. PricewaterhouseCoopers 4.53 6.29 6.56 7.26 8.08 8.21 6.38 7.88 8.10
7. ECA Seredyński i Wspólnicy 4.06 3.96 4.30 5.22 4.15 4.10 5.67 6.44 7.85
8. Grant Thornton Frąckowiak 5.01 4.20 3.85 4.08 4.37 4.97 5.91 7.16 9.37
Other audit firms 41.77 41.72 40.72 37.41 37.12 35.21 35.22 37.47 37.97

An audit company that most often provided auditing services to public companies (by sectors, %)

No. Sector 2011 2012 2013 2014 2015 2016 2017 2018 2019
1. Finance EY EY EY Deloitte Deloitte Deloitte Deloitte KPMG KPMG
2. Fuel and energy EY EY KPMG KPMG KPMG KPMG EY EY Deloitte
3. Chemicals and raw materials Deloitte KPMG Deloitte KPMG Deloitte Deloitte Deloitte EY EY
4. Industrial and construction-assembly production BDO Deloitte Deloitte Deloitte Deloitte Deloitte EY EY EY
5. Consumer goods Deloitte PwC Baker Tilly KPMG Deloitte Deloitte Deloitte Deloitte PwC
6. Trade and services PwC BDO PwC PwC PwC Deloitte Deloitte KPMG KPMG
7. Health care EY EY Deloitte Deloitte BDO BDO BDO BDO BDO
8. Technologies EY EY EY PKF EY PKF EY EY EY

Share of public companies from a given sector in which the audit firm changed in the total number of companies from a given sector (%)

No. Sector 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
1. Finance 18.09 24.49 22.68 21.05 16.49 24.24 35.87 27.78
2. Fuel and energy 13.33 11.76   5.56 20.00 15.79 38.89 26.32 20.00
3. Chemicals and raw materials 22.50 20.93 21.43 13.95 27.91 32.50 30.00 14.29
4. Industrial and construction-assembly production 20.37 19.81 22.02 20.18 23.08 32.74 29.52 14.85
5. Consumer goods 20.00 16.95 24.14 18.97 20.69 28.33 35.19 22.00
6. Trade and services 20.45 17.78 21.28 16.28 25.58 19.15 30.43 28.89
7. Health care 23.53 11.76 12.50 37.50 26.32 31.82 13.64 18.18
8. Technologies 12.82 17.50 17.07 25.00 17.95 28.95 35.29 25.00
Kruskal–Wallis test (P-value)  0.482  0.748 0.305 0.034*  0.205 0.923 0.073 0.084

Selected concentration indicators on the market of auditing services provided to public companies (%)

Concentration indicators 2011 2012 2013 2014 2015 2016 2017 2018 2019
BIG4 33.89 35.43 36.88 39.91 41.05 41.68 39.72 36.52 32.66
CR4 38.66 37.06 38.24 40.59 41.05 41.68 40.90 37.47 37.47
CR8 59.19 59.44 59.95 63.49 63.97 65.66 64.78 62.53 62.03
10KAP 52.03 51.98 52.04 52.83 55.24 56.59 55.79 54.65 50.89
eISSN:
2543-5361
Language:
English
Publication timeframe:
4 times per year
Journal Subjects:
Business and Economics, Political Economics, Economic Theory, Systems and Structures, Business Management, Management Accounting, Financial Controlling, Cost Calculation, Investment
Journal RSS Feed