[srhngpr]

Because it is an absolute race to the bottom (on price) when it comes to Big 4 audit. There is really no distinction or difference in services provided between the firms. You can practically switch from EY to one of the other three (if they don't mind excluding themselves from consulting work) overnight.

Disclaimer: work for Big 4 but in tech consulting, not audit.

[sukilot]

OTOH it was the Big 5 until Arthur Anderson gave up its license due to the Enron fraud.

So there's an incentive to audit correctly.

[firethief]

There's the same kind of incentive not to be the closest moth to the lightbulb, and yet....

The race-to-the-bottom/die-at-the-bottom reward structure only prevents disaster if the racers are invested for the long term. The agents in charge will have a high tolerance for that kind of risk if they hope to retire/sell before the money train jumps the tracks. I don't know if that's a hazard this industry is currently falling into, but it's a likely failure mode if nothing sufficiently enforces agents taking a long view.