GAO%20Summary%20on%20Auditor%20Concentration - January 2008...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
What GAO Found United States Government Accountability Office Why GAO Did This Study H ighlights Accountability Integrity Reliability January 2008 AUDITS OF PUBLIC COMPANIES Continued Concentration in Audit Market for Lar g e Public Companie s Doe s Not Call for Immediate Action Highlights of GAO-08-163 , a report to congressional addressees While the small public company audit market is much less concentrated, the four largest accounting firms continue to audit almost all large public companies. According to GAO’s survey, 82 percent of large public companies—the Fortune 1000—saw their choice of auditor as limited to three or fewer firms, and about 60 percent viewed competition in their audit market as insufficient. Most small public companies reported being satisfied with the auditor choices available to them. Percenta g e of Companie s Audited by Four Lar g e s t Accountin g Firm s , by Company S ize 2002 2006 2002 2006 2002 2006 2002 2006 S o u rce: GAO a n a ly s i s of A u dit An a lytic s d a t a . 0 20 40 60 8 0 100 (Number of companies) Percentage 44% 22% 90% 92% 71% 95% 9 8 %9 8 % $100 million - $500 million >$500 million - $1 billion >$1 billion <$100 million Company revenue (1,606) (794) (1,190) (907) (49 8 ) (516) (1,211) (1,51 3 )
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/22/2011 for the course ACCY 360 taught by Professor T during the Spring '08 term at Northern Illinois University.

Ask a homework question - tutors are online