Breaking 'Audit Oligopoly' Could Impact Financial Accounting and Audit Quality
The article discusses the potential effects of banning audit firms from offering both audit and non-audit services. Research shows mixed results on how this impacts the quality of financial accounting and audits, with some evidence suggesting a negative impact on earnings management and market reactions. However, studies using restatements and going concern opinions as indicators of quality have inconsistent findings. More research is needed in EU member states to determine the true impact of this proposed reform.