Abstract
The aim of this paper is to analyze the market concentration of audit services in the Czech Republic and compare its results with the international research. The analysis is based on transparency reports, which cover the year 2014. Among other information, auditors are required to present their total remuneration split into remuneration of audit services and remuneration of non-audit services in the transparency report. Globally recognized Herfindahl–Hirschman index is selected as an appropriate analytical tool for measurement of the market concentration. Herfindahl–Hirschman index is complemented by indicator of market share (current ratio). In the year 2014, the Big4 firms occupied 80% of total remuneration and 84% of audit remuneration. The analysis indicates a high level of market concentration of audit services in the Czech Republic, but the international comparison shows slightly lower market concentration in the Czech Republic than in the Germany and in the UK.
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Acknowledgments
This paper is processed as an output of the research project “Empirical rationalization of fundamental changes in the European audit legislation from the perspective of the auditing profession in the Czech Republic (with a focus on training in audit, quality audit and issue the audit market oligopoly)” (IGA VSE F1/33/2015).
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Šindelář, M., Müllerová, L. (2017). Audit Market Concentration Analysis Focusing on Auditors of Public Interest Entities. In: Procházka, D. (eds) New Trends in Finance and Accounting . Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-49559-0_41
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DOI: https://doi.org/10.1007/978-3-319-49559-0_41
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