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February 2, 2023

Accounting News Roundup: Big 4 Tenure Premiums; PCAOB Considers Overhaul; Poor Millennials | 05.22.18

Do Big Four Auditors Unfairly Raise Fees? [CFO]
A new study from Aloke Ghosh and Subprasiri Siriviriyakul of CUNY Baruch suggests that Big 4 firms oppose term limits not because they believe “clients benefit from superior audit quality rendered over longer audit firm tenure,” but rather the firms can charge a “tenure-linked fee premium” and exert “less audit effort is needed to provide the desired level of assurance.”

PCAOB explores whether to change audit inspection process [CW]
In a recent speech, new PCAOB Chairman William Duhnke said that the board was undergoing a “comprehensive organizational assessment,” noting, “While the PCAOB is no longer a nascent organization, many of our operations and programs maintain their original design.”

Financial Crisis May Have Hit ’80s Generation the Hardest [WSJ]
According to the Federal Reserve Bank of St. Louis, children of the ’80s “are at substantial risk of accumulating less wealth over their life spans than the members of previous generations.” Their wealth is 34 percent below where it would be if not for the most recent financial crisis.

Previously, on Going Concern…

I wrote about how the Big 4 loves the SCOTUS ruling on arbitration.

In other news:

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