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:

Credit Card Companies

Businesses that issue credit cards to consumers, facilitating electronic payment transactions and often offering credit facilities.

Monthly Credit Card Statements

Periodic summaries sent by credit card companies to cardholders, listing purchases, payments, and other transactions for the month.

Behavioral Economics

Behavioral economics studies how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.

Availability Heuristic

An intellectual quick-step that employs readily recalled instances when contemplating a certain topic, notion, strategy, or judgment.