Question

How do you think the market for auditing and legal advising would be affected if the Big Four were to have an oligopoly in those markets?

Answer 1

If Big Four were to have an oligopoly in the market for auditing and legal advising:

• The entire market would be under there control.
• They seem to regulate the affairs of the market.
• There would be strong barriers to any other public accounting firm to enter into the market.
• The prices might be increased among their discussions.
• The quality of the work might be reduced, as there won't be any regulator for them.
• There would be high chances of unemployment.
• If any other public accounting firm tend to enter, they need to incur a lot of upfront expenses to get recognized.
• They might become the decision makers which is not good.
• The quality of assurance services provided might be badly affected.
• The service time might get increased and clients might need to wait for long time to get their services.
• Unhappy clients may arise.
• Unhappy stakeholders may be resulted.
• Their might be lack of uniformity among them.
• Pricing may vary depending on their own decisions.