Date posted: 07/08/2023

UNSW releases preliminary findings of a research project on Audit Market Structure and Competition

CA ANZ and CPA Australia collaborated on a research project and engaged UNSW to conduct an updated study with data from 2019 to 2022.

In brief

  • When it comes to audit fees, the ASX market has a moderate level of concentration and it is becoming less concentrated over time
  • The market share, as determined by the number of clients, has decreased for both the Big 4 and smaller non-Big 4 auditors
  • Large audit firms audit large ASX companies, and small – medium firms audit small and medium companies

The initial findings from a study on Audit Market Structure and Competition in Australia from 2019-2022, by Dr Sarowar Hossain and Professor Gary Monroe at the University of New South Wales were presented at the Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference in July 2023. This study is part of a research program developed by the AFAANZ Audit Special Interest Group, CA ANZ and CPA Australia.

The study extends and updates Carson’s 2019 study, Audit Market Structure and Competition in Australia:2012–2018, using more recent data from 2019-2022 of Australian Stock Exchange (ASX) listed companies. It should however be noted that this study uses different metrics and data to the Carson 2019 study and therefore the preliminary findings are not directly comparable to Carson 2019 study.

NOTE: CA ANZ has not verified the correctness of the information contained in these preliminary findings from the research team at UNSW.

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