FTC Completes Study on Audit Services Industry

The FTC has completed its exploratory study on competition in Jamaica’s audit services market. The study examined competition in the market for auditing services in Jamaica with focus on two areas (i) trends in market concentration over the period 2013-2018; and (ii) industry –specific interactions between the top two leading (‘Big 2’) auditing firms and smaller auditors. Over the review period, the market was persistently highly concentrated with Big 2 firms consistently generating in excess of 90 percent of the audit fees for the industry. The results show that clients rarely switched away from Big 2 auditors to smaller auditors.  Big 2 auditors are likely to gain larger clients from switching as evidenced by the four clients that switched from smaller auditors.

Click the link below to access a comprehensive report of the study.