Politická ekonomie 2016, 64(6):730-746 | DOI: 10.18267/j.polek.1106

Auditorské služby v České republice pohledem analýzy tržní koncentrace (se zaměřením na auditory subjektů veřejného zájmu)

Michal Šindelář, Libuše Müllerová
Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví.

Market Concentration of Audit Services in the Czech Republic: Empirical Evidence (Focusing on Auditors of Public Interest Entities)

The aim of this paper is to analyze the market concentration of audit services in the Czech Republic and compare its results with the international research. The analysis is based on transparency reports for years 2011-2014. Auditors that in the reporting period carried out the statutory audit at some public interest entity are required to compile and publish the transparency report. Among other information, auditors are required to specify their total turnover split into turnover of audit fees and turnover of non-audit fees. Globally recognized Herfindahl-Hirschman index is selected as an appropriate analytical tool. Herfindahl-Hirschman index is complemented by indicators of market share (Current ratios) and the Lorenz curve which graphically displays the unequal distribution of the turnover on the market of audit services. These data show that in the period under investigation the firms forming Big4 obtained about 85% of audit fees. In the year 2014 the Big4 firms occupied 80% of total fees and 84% of audit fees. As a major player on the Czech market of audit services can be regarded two firms - Ernst & Young (EY) in the area of total fees and KPMG in the area of audit fees. The analysis clearly indicates a high level of market concentration of audit services in the Czech Republic. The high level of market concentration has its impacts on the audit quality and leads Authorities in the US and in the EU to the tightening of audit regulation.

Keywords: audit fees, non-audit fees, market share, concentration of audit market, auditor´s independence, audit quality
JEL classification: M42

Published: October 1, 2016  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Šindelář, M., & Müllerová, L. (2016). Market Concentration of Audit Services in the Czech Republic: Empirical Evidence (Focusing on Auditors of Public Interest Entities). Politická ekonomie64(6), 730-746. doi: 10.18267/j.polek.1106
Download citation

References

  1. Baumol, W. J.; Willig R. D. (1981). Fixed Costs, Sunk Costs, Entry Barriers, and Sustainability of Monopoly. Quarterly Journal of Economics, 96(3), 405-431, http://dx.doi.org/10.2307/1882680 Go to original source...
  2. Beattie, V.; Goodacre, A.; Fearnley, S. (2003). And Then There Were Four: A Study of UK Audit Market Concentration - Causes, Consequences and the Scope for Market Adjustment. Journal of Financial Regulation and Compliance, 11(3), 250-265, http://dx.doi.org/10.1108/13581980310810561 Go to original source...
  3. Bigus, J.; Zimmermann, R.C. (2008). Non-Audit Fees, Market Leaders and Concentration in the German Audit Market: A Descriptive Analysis. International Journal of Auditing, 12(3), 159-179, http://dx.doi.org/10.1111/j.1099-1123.2008.00378.x Go to original source...
  4. Carson, E.; Simnett, R.; Trompeter, G. (2014). The Impact of Other Component Auditors on the Costs and Quality of Multinational Group Audits, in CAHAN, S. ed., Proceedings of the Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference. Auckland. New Zealand.
  5. Evropská komise (2004). Guidelines on the Assessment of Horizontal Mergers under the Council Regulation on the Control of Concentrations between Undertakings. Official Journal of the European Union C 031, 47(5), 5-18. Dostupné z: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52004XC0205(02)&from=EN
  6. Evropská komise (2006). Directive on Statutory Audits of Annual Accounts and Consolidated Accounts, Amending Council Directives 78/660/EEC and 83/349/EEC and Repealing Council Directive 84/253/EEC. Official Journal L 157, 49(6), 87-107. Dostupné z: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32006L0043&from=EN
  7. Evropská komise (2014(1)). Regulation (EU) No 537/2014 on Specific Requirements Regarding Statutory Audit of Public-Interest Entities and Repealing Commission Decision 2005/909/ EC. Official Journal L 158, 77-112. Dostupné z: http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014R0537&qid=1430086316932&from=EN
  8. Evropská komise (2014(2)). Direcitve 2014/56/EU amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts. Official Journal L 158, 196-226. Dostupné na: http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014L0056&qid=1430086474798&from=EN
  9. Fama, E. F.; Jensen, M. C. (1983). Separation of Ownership and Control. Journal of Law and Economics, 26(2), 301-325, http://dx.doi.org/10.1086/467037 Go to original source...
  10. IFAC - International Federation of Accountants (2009). International Standard on Quality Control 1: Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements. New York: International Federation of Accountants. Dostupné z: http://www.ifac.org/system/files/downloads/a007-2010-iaasbhandbook-isqc-1.pdf
  11. Hayes, R.; Wallage, P.; Gortemaker, H. (2015). Principles of Auditing: An Introduction to International Standards on Auditing. New Jersey: Prentice Hall. ISBN 978-0-273-76817-3.
  12. Healy, P. M.; Palepu, K. G. (2003). The fall of Enron. Journal of Economic Perspectives, 17(2), 3-26, http://dx.doi.org/10.1257/089533003765888403 Go to original source...
  13. Heβ, B.; Stefani, U. (2012). Audit Market Regulation and Supplier Concentration Around the World: Empirical Evidence. University of Konstanz. Working Paper Series No. 2012-33. Dostupné z: http://www.uni-konstanz.de/FuF/wiwi/workingpaperseries/WP_Hess-Stefani_33-12.pdf
  14. Jensen, M. C.; Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360, http://dx.doi.org/10.1016/0304-405X(76)90026-X Go to original source...
  15. KAČR (2011). Etický kodex pro auditory a účetní znalce. Praha: Komora auditorů České republiky. Dostupné z: http://www.kacr.cz/eticky-kodex-komory-auditoru-ceske-republiky
  16. KAČR (2012). Příspěvkový řád Komory auditorů České republiky. Praha: Komora auditorů České republiky. Dostupné z: http://www.kacr.cz/file/1180/Prispevkovy_rad_2012.pdf
  17. KAČR (2014). Souhrnná zpráva kontroly kvality za rok 2013 [on-line]. Praha: Komora auditorů České republiky. [cit. 2015-07-12] Dostupné na: http://www.kacr.cz/file/1947/o-cj11072014-souhrnna-zprava-o-kontrole-kvality-za-rok-2013.pdf.
  18. Lambert, R. A. (2001). Contracting Theory and Accounting. Journal of Accounting and Economics, 32(1-3), 3-87, http://dx.doi.org/10.2139/ssrn.235800 Go to original source...
  19. Leuz, Ch. (2010). Different Approaches to Corporate Reporting Regulation: How Jurisdictions Differ and Why. Accounting and Business Research, 40(3), 229-256, http://dx.doi.org/10.2139/ssrn.1581472 Go to original source...
  20. Marten, K. U.; Schultze, W. (1998). Konzentrationsentwicklung auf dem deutschen und europäischen Prüfungsmarkt. Zeitschrift für betriebswirtschaftliche Forschung, 50(4), 360-386, http://dx.doi.org/10.1007/bf03371510 Go to original source...
  21. Myddelton, D. R. (2004). Unshackling Accountants. London: Institute of Economic Affairs. ISBN 978-0-255-36559-8.
  22. Pong, Ch. K. M. (1999). Auditor Concentration: A Replication and Extension for the UK Audit Market 1991 - 1995. Journal of Business Finance & Accounting, 26(3&4), 451-475, http://dx.doi.org/10.1111/1468-5957.00263 Go to original source...
  23. Ray, K. (2011). One Size Fits All? Costs and Benefits of Uniform Accounting Standards. SSRN Electronic Journal, http://dx.doi.org/10.2139/ssrn.1940696 Go to original source...
  24. Stefani, U. (2006). Anbieterkonzentration bei Prüfungsmandanten börsennotierter Schwiezer Aktiengesellschaften. Die Betriebswirtschaft, 66(2), 121-145.
  25. Thinggaard, F.; Kiertzner, L. (2004). The effect of two auditors and non-audit services on audit fees: evidence from a small capital market. Aalborg university. Working paper No. 04-02. ISBN 87-91646-01-4.
  26. US-GAO (United States General Accounting Office) (2003). Public Accounting Firms, Mandated study on Consolidation and Competition. Report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. Dostupné z: http://www.gao.gov/assets/240/239226.pdf
  27. Watts, R. L.; Zimmerman, J. L. (1981). The Markets for Independence and Independent Auditors. Graduate School of Management, The University of Rochester. Working Paper No. GPB 80-10.
  28. Watts, R. L.; Zimmerman, J. L. (1983). Agency Problems, Auditing, and the Theory of the Firm: Some Evidence. Journal of Law and Economics, 26(3), 613-633, http://dx.doi.org/10.1086/467051 Go to original source...
  29. Zákon č. 93/2009 Sb., o auditorech a o změně některých zákonů, ve znění pozdějších předpisů.

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.