The role of «BIG FOUR» auditing firms in the public procurement market in Ukraine

Main Article Content

Olena Antoniuk
Natalya Kuzyk
Iryna Zhurakovska
Roman Sydorenko
Liudmyla Sakhno
صندلی اداری

Abstract

The authors conducted a study aimed to identify the role of «Big Four» («Big 4») audit firms in the public procurement market in Ukraine.The purpose of the article is to answer the questions: whether Ukraine is in a general trend of most countries in the concentration of audit market; what is the share of revenues of the «Big Four» audit firms in the performance of audit services in the public procurement system in Ukraine. First of all, in order to get answers to these questions, the authors conducted a study of the main trends in the development of the «Big Four» companies in Ukraine. It was found that the characteristic competitive environment in the market of audit services, the impact on competitiveness of pricing policy and regulatory requirements, relating to the acquisition of audit services by public sector entities through a public procurement system "ProZorro". An element of price regulation and compliance with the transparent conditions of the competitive environment is the participation of audit firms in the public procurement system. As a result of processing data on procurement of audit services for the period 2008-2019, the authors calculated key indicators that characterize the concentration of the audit market. Based on the data on the amount of remuneration for various types of audit services using the public procurement system "ProZorro", aspects of pricing policy and the role of the companies of the "Big Four" in the market were established. The values indexes indicate that the companies of the «Big 4» do not have a complete monopoly in the segment of procurement of audit services, having certain dominant positions in some years, and the indexes indicate a trend towards effective competition in the audit services market in Ukraine.

Downloads

Download data is not yet available.

Article Details

Section
Integration System of Education, Science and Production
Author Biographies

Olena Antoniuk, National University of Water and Environmental Engineering

Dr.Sc. in Economics, Associate Professor

She is the author and co-author of 4 text books, 5 monographs, more than 120 scientific articles and teaching aids in Ukraine and abroad, devoted to the issues of development of audit services. Antoniuk O.R. is the member of the Federation of Professional Accountants and Auditors of Ukraine, International Public Organization "Council of Independent Accountants and Auditors".

Scientific interests: audit, development of audit services, methodology and organization of provision of audit services.

Natalya Kuzyk, National University of Life and Environmental Sciences of Ukraine

Ph.D. in Economics, Associate Professor of the Accounting and Taxation Department, National University of Life and Environmental Sciences of Ukraine.

She teaches disciplines taught: Audit, Financial Accounting.

Scientific interests: prospects for the development of audit in agricultural enterprises.

ResearcherID H-7517-2018

 

Iryna Zhurakovska, Lutsk National Technical University

Ph. D. in Economics, Associate Professor, Associate Professor of Department of Accounting and Audit, Lutsk National Technical University.
She teaches disciplines taught: International financial reporting standards, audit, tax reporting, accounting and taxation software.
Scientific interests: accounting and taxation of intellectual and natural capital
Author of more than 130 scientific works. 
ORCID 0000-0001-9803-5874
ScopusID 56677747100

Roman Sydorenko, Lutsk National Technical University

Ph. D. in Economics, Associate Professor, Associate
Professor of Department of Accounting and Audit, Lutsk National Technical University. 
He teaches disciplines taught: Regulatory support of accounting and taxation, Simplified taxation system, Accounting in banks, Social audit, and inspection.
Scientific interests: Small business taxation, Forestry taxation, Tax administration,
Social audit.
Author of more than 80 scientific works. 
ScopusID 56677730600
S. Kovalevska str.29, 43000, Lutsk, Ukraine

Liudmyla Sakhno, Dmitry Motornyi Tavriya State Agrotechnological University

Ph.D. in Economics, Associate Professor of Accounting and Taxation, Dmitry Motornyi Tavriya State Agrotechnological University, Melitopol, Ukraine. Member of the Federation of Accountants, Auditors and Financiers of the AIC of Ukraine.

She teaches disciplines taught : Accounting, Audit, Accounting policy.

Scientific interests: accounting, theory of institutional accounting, depreciation policy, digitalization of economics

References

ABBOTT, L. J.; PARKER, S.; PETERS, G. F.; RAGHUNANDAN, K. (2010) An Empirical Investigation of Audit Fees, Nonaudit Fees, and Audit Committees. Contemporary Accounting Research, v. 20, n. 2, p. 215. DOI: https://doi.org/10.1506/8YP9-P27G-5NW5-DJKK.

ADELOPO, I. (2009) Modelling issues in the relationship between audit and non-audit fees. Journal of Applied Accounting Research, v. 10, n. 2, р. 96-108. Available: https://papers.ssrn.com¬/sol3/papers.cfm?abstract_id=1283099. Access: 11 June 2020.

ANTONIUK, O.; CHYZHEVSKA, L.; SEMENYSHENA, N. (2019). Legal regulation and trends of Audit services: what are the differences (evidence of Ukraine). Independent Journal of Management & Production, v. 10, n. 7, 673-686. DOI: http://dx.doi.org/10.14807/ijmp.v10i7.903.

AUDIT CHAMBER OF UKRAINE (2020) Reports of the Audit Chamber of Ukraine to the Cabinet of Ministers of Ukraine. Available: . Access: 1th June, 2020

BEATTIE, V.; FEAMLEY, S. (2002). Auditor Independence and Non-Audit Services: a Literature Review. Institute of Chartered Accountants in England & Wales: London, UK. ISBN 9781841521381. Available: http://eprints.gla.ac.uk/33531/. Access: 10 June 2020.

BIERSTAKER, J; HOUSTON, R.; WRIGHT, A. (2006) The Impact of competition on audit planning, review and performance. Journal of Accounting Literature, v. 25, n. 1, p. 1-58. Available: <https://www.researchgate.net/publication/285696970_The_impact_of_competition_on_audit_planning_review_and_performance>. Access: 18 June 2020.

BIG 4 ACCOUNTING FIRMS RANKING (2019). Available: <https://big4accountingfirms.com/big-4-accounting-firms-ranking>. Access: 16 June 2020.

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, v. 12, n. 3, p. 159-179. DOI: https://doi.org/10.1111/j.1099-1123.2008.00378.x

BILLINGS, B. A.; XINGHUA, G. X.; JIA, Y. (2014) CEO and CFO equity incentives and the pricing of audit services. Auditing: a Journal of Practice & Theory, v. 33, n. 2. P. 800-817. DOI: 10.1108/MAJ-08-2014-1063.

BLOOMFIELD, D.; SHACKMAN, J. (2008) Non-audit services fees, auditor characteristics and earnings restatements. Managerial Auditing Journal, v. 23, n. 2, p. 125-141. Available: <https://www.researchgate.net/publication/227429781_Non-audit_service_fees_auditor_¬charac¬teristics_and_earnings_restatements>. Access: 19 June 2020.

CAHAN, S.F.; GODFREY, J.M.; HAMILTON, J.; JETER, D.C. (2008) Auditor Specialization, Auditor Dominance, and Audit Fees: The Role of Investment Opportunities. The Accounting Review, v. 83, n. 6, p. 1393-1423. DOI: 10.2307/30243801

CHOI, J.-H.; KIM, J.-B.; ZANG, Y. (2010) Do abnormally high audit fees impair audit guality? Auditing: A Journal of Practice and Theory, v. 29, n. 2, p. 115-140. Research Collection School Of Accountancy. Available: https://ink.library.smu.edu.sg/soa_research/12. Access: 25 June 2020.

DATABASE PROZORRO (2020) Public procurement system «ProZorro».Available: https://e-tender.ua/prozoro?gclid=EAIaIQobChMIyPz05Nb-6gIVSNiyCh1X2gmSEAAYASA¬AEg¬KG3fD¬_BwE. Access: 27 June 2020.

KHORUNZHAK, N.; BELOVA, I.; ZAVYTII, O.; TOMCHUK, V.; FABIIANSKA, V. (2020) Quality control of auditing: Ukrainian prospects. Independent Journal of Management & Production, v. 11, n. 8, p. 712-726. DOI:10.14807/ijmp.v11i8.1229.

OJALA, H.; NISKANEN, M.; COLLIS, J.; PAJUNEN, K. (2014) Audit quality and decision-making in small companies. Managerial Auditing Journal, v. 29, n. 9, p. 817-800. DOI: 10.1108/MAJ-08-2014-1063.

RODRIGUES, P. C. C. (2013) Studying the stocks management of a small company of the services. Independent Journal of Management & Production, v. 4, n. 1, p. 71-95. DOI: dx.doi.org/10.14807/ijmp.v4i1.49.

SLOBODYANIK, Y.; KONDRIUK, L.; HAIBURA, Y. (2019) The strategy of institutional reform of the supreme audit institution: the case of Ukraine. Independent Journal of Management & Production, 10(7), 872-896. DOI: http://dx.doi.org/10.14807/ijmp.v10i7.916.

TEPALAGUL, N.; LIN, L. (2015) Auditor independence and audit quality: a literature review. Journal of Accounting, Auditing & Finance, v. 30, n. 1, p. 101-121. DOI: https://doi.org/10.1177/0148558X14544505.

ZHANG B.; EMANUEL, D. (2008) The provision of non-audit services and earnings conservatism: Do New Zealand auditors compromise their independence? Accounting Research Journal, v. 21, n. 2, p. 195-221. DOI: https://doi.org/10.1108/10309610810905953.

فروشگاه اینترنتی