DISCUSSION ON DEVELOPMENT OF CERTIFIED PUBLIC ACCOUNTING
Discussions on the amendments required to the laws and regulations that govern the services provided by certified public accountants have
been going on for years. Actual changes in the legislation began in the USA following the big financial fraud scandals in 2002. The European
Commission also decided to implement similar changes. Such changes have a direct impact on the business environment of all companies, and
especially, on that of small audit companies which face the need to look for ways how to adapt to the new conditions. The aim of the paper is
to summarise the findings of research activities performed over the past years and to identify the most important trends that can be used for
further research concerning the best business model for small audit companies. The sustainability of small audit companies is important in light
of the necessity to have economically effective competition.
This research is based on the review of literature. It was concluded during the course of the review that the accounting profession needed
to be changed in order for it to meet public expectations. The most important factors are strengthening of the independence of auditors and
improvement of the quality of audit work, including specification of criteria for the assessment of quality. Further sustainable development
strategy should be prepared and implemented in order to ensure appropriate competition and to avoid market concentration with just a few big
Keyword(s): certified public accountant, independence of auditors, assessment of the quality, small audit companies.
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Economics and Rural Development ISSN 1822-3346 / eISSN 2345-0347
This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editors: Prof. Dr Vilija Alekneviciene, Dr Gunita Mazure.