Demand for Increased Regulation of the Audit Profession Has Come

question 2

Essay

Demand for increased regulation of the audit profession has come from audit firms themselves, particularly medium sized firms that find it difficult to secure audit contracts for public limited companies (PLCs) given the predominance of the 'Big Four' firms. One medium sized firm has written to the House of Lords inquiry asking for a cap on the number of big audit contracts any one firm can have.
Set out in not more than 500 words the effect of increased regulation to compel Big 4 audit firms to give up large multinational audits.

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Definitions:

Team Members

Individuals who belong to a group working together towards a common goal, sharing responsibilities, and contributing their skills and efforts.

Optimum Achievement

Achieving the best or most favorable outcome within given constraints or conditions.

Collaboration

The action of working with someone to produce or create something, emphasizing shared goals and teamwork.

Open-book Management

A management approach where businesses share their financial and operational information with all employees to engage and empower them.