EU Statutory Audit Reform: Impact on costs, concentration and competition

09-04-2019

In this study we execute an in-depth analysis of the evolution of market concentration, competition and costs in the EU market for statutory auditing before and after the Audit Reform. Based on data from archival databases and a survey, we present evidence suggesting that rivalry between the largest audit suppliers increased, as did audit costs, non-Big 4 audit market share, and joint audit rates. Non-audit services (NAS) fees earned by the incumbent auditor decreased. This document was provided by Policy Department A at the request of the Economic and Monetary Affairs (ECON) Committee.

In this study we execute an in-depth analysis of the evolution of market concentration, competition and costs in the EU market for statutory auditing before and after the Audit Reform. Based on data from archival databases and a survey, we present evidence suggesting that rivalry between the largest audit suppliers increased, as did audit costs, non-Big 4 audit market share, and joint audit rates. Non-audit services (NAS) fees earned by the incumbent auditor decreased. This document was provided by Policy Department A at the request of the Economic and Monetary Affairs (ECON) Committee.

Autore esterno

Marleen WILLEKENS, Simon DEKEYSER, Ines SIMAC