<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The main purpose of this paper is to determine the impact that Big 4 companies have had after the adoption of International Financial Reporting Standards (IFRS) became mandatory on the audit market. Thus, after thorough research of the specialised studies, the impact of the financial reporting based on IFRS is analysed, while considering that Big 4 companies have created a strong monopoly that led to several changes on the audit market. All the companies listed on the Bucharest Stock Exchange that traded premium shares from 2011 to 2019 were analysed. With the use of ANOVA analysis, this paper verifies if the profitability, shareholders’ funds, firm size and the size of the business group influence the choice of the audit firm. Our results confirm that the choice of an audit firm is influenced by the shareholders’ funds, number of employees and the size of the business group. Besides, this paper presents an analysis of the changes that have occurred from 2011–2019 on the audit market of Romania.</p></abstract>

The main purpose of this paper is to determine the impact that Big 4 companies have had after the adoption of International Financial Reporting Standards (IFRS) became mandatory on the audit market. Thus, after thorough research of the specialised studies, the impact of the financial reporting based on IFRS is analysed, while considering that Big 4 companies have created a strong monopoly that led to several changes on the audit market. All the companies listed on the Bucharest Stock Exchange that traded premium shares from 2011 to 2019 were analysed. With the use of ANOVA analysis, this paper verifies if the profitability, shareholders’ funds, firm size and the size of the business group influence the choice of the audit firm. Our results confirm that the choice of an audit firm is influenced by the shareholders’ funds, number of employees and the size of the business group. Besides, this paper presents an analysis of the changes that have occurred from 2011–2019 on the audit market of Romania.

‘Big 4’ influence on audit market

The Bucharest University of Economic Studies

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"\u2018Big 4\u2019 influence on audit market"}

The main purpose of this paper is to determine the impact that Big 4 companies have had after the adoption of International Financial Reporting Standards...

‘Big 4’ influence on audit market

Published Online: Nov 09, 2020

Page range: 143 - 156

DOI: https://doi.org/10.2478/ceej-2020-0010

Keywords
IFRS, Big 4, audit fees, financial reporting, accounting standards, monopoly, audit market

© 2020 Marta Tache, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

‘Big 4’ influence on audit market

Published Online: Nov 09, 2020

Page range: 143 - 156

DOI: https://doi.org/10.2478/ceej-2020-0010

KeywordsIFRS, Big 4, audit fees, financial reporting, accounting standards, monopoly, audit market

© 2020 Marta Tache, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
IFRS, Big 4, audit fees, financial reporting, accounting standards, monopoly, audit market