1. Market concentration has been a feature of auditing in the past few decades. Large accounting firms have come to dominate audit and assurance services. Discuss the effect of market concentration on...

1. Market concentration has been a feature of auditing in the past few decades. Large accounting firms have come to dominate audit and assurance services. Discuss the effect of market concentration on audit quality in the context of capital market efficiency.

2. What is the role of regulatory bodies such as the SEC and PCAOB in the US and the European Commission in the audit market? Discuss this in terms of:

(a) setting audit standards;

(b) monitoring and performing the quality control reviews.