Abstract

NAVARRETE ESPARZA, Marcelo Andrés  and  MORALES PARADA, Fernando Andrés. Big Four Market Concentration: What's Going On in Chile. Podium [online]. 2023, n.43, pp.145-162. ISSN 2588-0969.  https://doi.org/10.31095/podium.2023.43.9.

The audit market is of international relevance and gives confidence to the markets. The Big Four firms (from now on, B4) have a global scope, prestige, and turnover that are not alien to the interest of concentrating important client portfolios. This study reviews 13 years of B4 participation in the 29 IPSA companies in Chile and includes 348 audit reports consulted. The objective is to understand the level of market concentration, reveal the story of firm and partner rotation, female participation at the signing partner level, and describe the status of the reports. The results show a high concentration of B4s in IPSA, low firm/partner turnover, low female presence, and partners exceeding time for the same entity. This study provides empirical data on this industry in Chile and proposes a discussion on the importance of auditor rotation.

Keywords : Audit market; IPSA; Independent auditor; Big Four; Concentration; Chile.

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