FRC expresses concern over Big Four monopoly

News Article - 23 May 2012
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The claim that the dominance of the Big Four is not to blame for increasing audit costs is incorrect, according to the head of the Financial Reporting Council.

Paul Boyle claimed that there is an urgent need to examine how the monopoly of the audit market is affecting the industry as a whole, reports Accountancy Age.

The magazine stated that Mr Boyle disagreed with the US Government Accountability Office's announcement that other factors were to blame for increasing fees.

He said that the government report highlighted "significant" concentration problems but that it was unsure of what action to take.

"We agree that current levels prevent significant risks and the fact that there are risks means there is a compelling need to do something. We don't share their views on this point," he explained.

The Big Four is made up of KPMG, Deloitte, Ernst & Young and PricewaterhouseCoopers, some of which recorded record profits of over £1 billion last year.

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