Public accounting firms

I agree with the idea that the public accounting firms could be driven by their motives in profits thus compromising their independence in the auditing processes. Increasingly, the public auditing firms have been considering the gaining of earnings from the companies with a considerable profit gain in a financial year. The focus on the profits has led to a compromise of the autonomy of the public accounting firms. More often than not, the firms may find themselves prioritizing the accounting of the large firms with huge profits over the smaller companies who may be requiring similar services. That is an indicator of the loss of their independence in the accounting functions. The government involvement in the public accounting of the big and small companies may be a short-term solution to the problem. Nevertheless, the public accounting firms will still be more effective than the government in accounting at the end of the day. The management of the firms will be the change that will eliminate the profit content. 

Other than the accounting being done solely by the government, the use of a fixed accounting price for the public accounting firms is another idea that may be used to remedy the bias created by the firms' focus on the companies with huge profits at the expense of the smaller companies. Primarily, the fixing of a standard rate of accounting to be charged by the firms will equalize the treatment being accorded to the companies of different financial prowess. The standard rate will also eliminate the issue of the public accounting firms focusing more on the profits made by the companies and what they can reap from it. That will be the first instrumental step towards the reduction of the bias that has been experienced in the process of accounting. The removal of the profit content from the accounting fee charged by the public accounting firms will also reduce the possibility of the occurrence of the accounting fraud by the companies and the corruption in the public accounting firms.