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There is a problem with the structure of the Big Four auditing firms and their market. Their resources are geared mainly to satisfying the demands of multinational corporations, which are their main source of revenue. But this means that the Big Four offer smaller companies the same kind of service, even though this may not be appropriate. The auditor is usually one of the major firms, since generally only they will have representatives in each of the nations where the client has subsidiaries. This process is the same irrespective of the client's size, so the cost is relatively high for smaller clients. Other areas where smaller companies may pay more for emulating multinationals include compliance with Sarbanes-Oxley requirements or their European or Asian equivalents. Practitioners need to look at compliance methods that are more cost-effective. It is also worth remembering that other areas could also be subjected to a similar review.
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