Jump to ContentJump to Main Navigation
Political StandardsCorporate Interest, Ideology, and Leadership in the Shaping of Accounting Rules for the Market Economy$
Users without a subscription are not able to see the full content.

Karthik Ramanna

Print publication date: 2015

Print ISBN-13: 9780226210742

Published to Chicago Scholarship Online: May 2016

DOI: 10.7208/chicago/9780226210889.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 24 September 2021

The Shrinking Big N

The Shrinking Big N

Rule-Making Incentives of the Tightening Oligopoly in Auditing

(p.68) 4 The Shrinking Big N
Political Standards

Karthik Ramanna

University of Chicago Press

This chapter provides evidence on the role of auditors in accounting rulemaking – particularly the Big Four audit firms that dominate the industry. These large audit firms are among the few players that could provide broad stewardship of public interests in accounting rulemaking. But the evidence suggests that they are instead focused on their own interests. In their lobbying on accounting rules, the auditors have sought to protect their wealth and income from political and legal scrutiny. Prevailing standards of litigation and regulatory enforcement are key explanatory variables for the nature of auditor lobbying in accounting rulemaking. One likely consequence is the increasing incidence of accounting rules that are “check-the-box” or compliance-based – a phenomenon identified by the Securities & Exchange Commission as a major source for concern in U.S. capital markets.

Keywords:   auditors, big four, fair-value accounting, liability, risk aversion

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.