In the context of European integration processes and transformations in the banking sector, a study of the concentration of the audit services market in Ukraine, one of the most regulated markets, was held. The authors applied a number of methods for evaluation of concentration: the traditional methods of determining the level of market competition and the Kruskal-Wallis test to confirm market heterogeneity. The results allow for a conclusion that there is a high level of regional market concentration, which necessitates a competitive market environment for the implementation of audit services.
Abidin, S., Beattie, V., Goodacre, A. (2008). Audit Market Structure, Fees and Choice following the Andersen Break-up: Evidence from the U.K. https://doi.org/10.2139/ssrn.1096464
ACCA (2011). Audit under fire: a review of the post-financial crisis inquiries. Retrieved from http://www.accaglobal.com/content/dam/acca/global/PDF-technical/audit-publications/pol-af-auf.pdf
Baumol, W. J. et al. (1982). Willing Contestable Markets and the Theory of Industry Structure. Harcourt Brace Jovanovich: New York. Retrieved from https://mpra.ub.uni-muenchen.de/41974/
Boone, J. P., Khuranaet, I. K., Raman, K. K. (2012). Audit market concentration and auditor tolerance for earnings management. Contemporary Accounting Research, 29(4), 1171-1203. https://doi.org/10.1111/j.1911-3846.2011.01144.x
Carson, E. (2009). Industry specialization by global audit firm networks. Accounting Review, 84, 355–382. https://doi.org/10.2308/accr.2009.84.2.355
Casterella, J., Francis, J., Lewis, B., Walker, P. (2004). Auditor industry specialization, client bargaining power and audit pricing. Auditing: A Journal of Practice & Theory, 23(1), 123-140. https://doi.org/10.2308/aud.2004.23.1.123
CIMA (2010). Auditors: Market concentration and their role consultation response. Retrieved from http://www.cimaglobal.com/Documents/Insightdocs/HoL%20Auditor%20report%20September%202010.pdf
Competition Commission (2013). Statutory audit services for large companies market investigation: а report on the provision of statutory audit services to large companies in the UK. Retrieved from https://assets.publishing.service.gov.uk/media/54252eae40f0b61342000bb4/The_Order.pdf
Directive 2014/56/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts. Retrieved from http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014L0056
Doogar, R., Easley, R. (1998). Concentration without differentiation: A new look at the determinants of audit market concentration. Journal of Accounting and Economics, 25(3), 235-253. https://doi.org/10.1016/S0165-4101(98)00027-5
Dunn, K., Kohlbeck, M., Mayhew, B. W. (2011). The impact of the big 4 consolidation on audit market share equality. Auditing: A Journal of Practice & Theory, 30(1), 49-73. https://doi.org/10.2308/aud.2011.30.1.49
Francis, J., Michas, P., Seavey, S. (2013). Does audit market concentration harm the quality of audited earnings? Evidence from audit markets in 42 countries. Contemporary Accounting Research, 30(1), 325-355. https://doi.org/10.1111/j.1911-3846.2012.01156.x
Francis, J., Reicheltet, K., Wang, D. (2005). The pricing of national and city-specific reputations for industry expertise in the U.S. audit market. The Accounting Review, 80 (1), 113-136. https://doi.org/10.2308/accr.2005.80.1.113
Gerakos, J., Syverson, C. (2015). Competition in the audit market: policy implications. Journal of Accounting Research, 53(4), 725-775. https://doi.org/10.1111/1475-679X.12087
Government Accountability Office (2003). Public accounting firms: mandated study on consolidation and competition. Highlights of GAO, 03-864. Retrieved from https://www.gao.gov/assets/240/239226.pdf
Government Accountability Office (2008). Audits of public companies: Continued concentration in audit markets for large public companies does not call for immediate action. Highlights of GAO, 08-163. Retrieved from https://www.gao.gov/new.items/d08163.pdf
Hirschey, M. (2008). Fundamentals of Managerial Economics. Cengage Learning.
Hogan, C., Jeter, D. (1999). Industry specialization by auditors. Auditing: A Journal of Practice and Theory, 18(1), 1-17. https://doi.org/10.2308/aud.1922.214.171.124
House of Lords (2010). Auditors: Market concentration and their role. HL Paper 119–I. London : The Stationery Office Limited. Retrieved from http://www.publications.parliament.uk/pa/ld201011/ldselect/ldeconaf/119/119.pdf
Maher, M., Tiessen, P., Colson, R., Broman, A. (1992). Competition and audit fees. Accounting Review, 67(1), 199-211. Retrieved from https://www.jstor.org/stable/248028
Minyard, D., Tabor, R. (1991). The effect of Big Eight mergers on auditor concentration. Accounting Horizons, 5, 79-90.
Naldi, M., Flamini, M. (2014). The CR4 index and the interval estimation of the Herndahl-Hirschman Index: an empirical comparison. Retrieved from https://hal.archives-ouvertes.fr/hal-01008144
Newton, N., Wang, D., Wilkins, M. S. (2013). Does a lack of choice lead to lower audit quality? Evidence from auditor competition and client restatements. Auditing: A Journal of Practice & Theory, 32(3), 31-67. https://doi.org/10.2308/ajpt-50461
Numan, W., Willekens, M. (2012). An empirical test of spatial competition in the audit market. Journal of Accounting & Economics, 53(1-2), 450-465. https://doi.org/10.1016/j.jacceco.2011.10.002
OECD (2009, 2010). Policy Roundtables Competition and Regulation in Auditing and Related Professions.
Ogorodnikova, T., Sergeyeva, S. (2013). Theory of quasi-competitive markets. Ekonomika 2.0. Retrieved from http://econ2.ru/blogs/problemy-obrazovanija/teorija-kvazikonkurentnyh-rynkov.html
Oxera (2006). Competition and Choice in the UK Audit Market. Prepared for Department of Trade and Industry and Financial Reporting Council. Oxford: Oxera Consulting.
Petrakov, A. (2013).Theory of quasi-competitive markets and audit services market: identification problems. Visnyk Chernihivskoho derzhavnoho tekhnolohichnoho universytetu, 3, 248-258.
Quick, R., Wolz, M. (1999). Concentration on the German audit market—An empirical analysis of the concentration on the German market for stock corporation audits. International Journal of Auditing, 3, 175-189. https://doi.org/10.1111/1099-1123.00058
Redko, O. (2009). The methodology and organization of professional audit in Ukraine. Status and Prospects: avtoref. dys. d-ra ekon. nauk: 08.00.2009. Derzh. kom. statystyky Ukrainy, Derzh. akad. statystyky, obliku ta audytu.
Sanders, G., Arthur, A., Leone,t K. (1995). Municipal audit fees: has increased competition made a difference? Auditing: A Journal of Practice & Theory, 14(1), 105-114.
Securities and Exchange Commission. Speech by SEC Chairman: Remarks Before the 2005 AICPA National Conference on Current SEC and PCAOB Developments by Chairman Christopher Cox U.S., Washington D.C.
U.S. Treasury (2006). Remarks by Treasury Secretary Henry M. Paulson on the competitiveness of U.S. capital markets. New York: Economic Club of New York. Retrieved from http://www.ustreas.gov/press/releases/hp174.htm