Q1 Q5

Question 1

Big 4 - P1

Answer 1

Audit scandal - Post office
Many deficiencies in audit quality from reports by regulatory bodies like FRS, shows importance of making changes to improve how auditors are monitored and accountable.
Improving audit quality, maintains investor confidence, protect stakeholders and maintain integrity in financial markets.

Question 2

Big 4 - P2

Answer 2

More diverse landscape of audit firms, brings fresh perspectives and innovate approaches to auditing.
However, the big 4 have resources, expertise and global networks, which small firms may lack.
Limiting dominance could result in a loss of access to specialised knowledge and skills.

Question 3

Big 4 - P3

Answer 3

Increase in Competition which shows companies have more choices when selecting auditors, can select a better match for the business in terms of their requirements and preferences.
Smaller firms are competing with the Big 4 on a large scale, which results in greater instability and potential audit failures.