“This is rearranging the deckchairs on the Titanic. To regulators, they have always been giving warnings that if you close one down, we will be the Big 3 – so leave us alone, as we are ‘too big to fail’. Fundamentally, it’s the leadership culture and aggressively commercial model of these firms which is broken […]
Barry Salzberg demonstrates the art of the dodge: Are the Big Four audit firms too big to fail? There is no evidence that would indicate that there is a lack of choice by business to pick up a firm to work with, so I don't agree with the premise of that question. Good lord. […]
Just something for the ol’ memory bank, Big 4 risk managers.
[Professor] Michael Power from the London School of Economics told the conference that big audit firms were “probably” not “systemic” in nature, in the same way as banks, and that it was unlikely government would step in to save one on the edge of going bust. Power said the lesson from the collapse of Andersen was that the crisis facing the audit market was relatively shortlived when a big firm collapsed, and that a global firm in trouble will break up into its national components to find a solution. He added there was no real evidence of market failure as a result of Andersen’s demise.
Big Four are ‘not too big to fail’ [Accountancy Age]