Auditing minnows feel Big 4�s pinch
Friday, March 02, 2018
Botswana Accountancy Oversight Authority CEO Duncan Majinda. PIC. MORERI SEJAKGOMO
The local auditing market is dominated nearly entirely by PwC, KPMG, Deloitte and Ernst & Young, while the failure rate amongst small firms is estimated at 30%.
From the establishment of the local audit sector, the Big Four carved up the market, leveraging on their global prowess, linkages with multi-nationals, brand power and superior product and service offerings.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...