The audit market in Germany

The future of the audit market is hotly debated in Germany, particularly in light of the Wirecard case.

In the aftermaths of the Wirecard scandal and the Act to Strengthen Financial Market Integrity (FISG, July 2022), the new German federal government reached a coalition agreement ("Dare more progress - Alliance for freedom, justice and sustainability"), which includes a part on audit (5861& seq.): "Auditing is of great public interest. We want to further strengthen the independence of auditors and counter the high concentration in the audit market with appropriate measures, for example in public procurement."

As a key stakeholder in the audit ecosystem, Mazars Germany is working with the most recognised experts in their fields (FAZ Institut, DICE). We contribute to the on-ongoing discussions on the best way to restore confidence and improve the corporate reporting and auditing framework.

Here you will find resources and insights on the latest developments in the German audit market.

For more information, please see the dedicated website for Mazars Germany here.

Academic studies

Options for audit reform

This study examines options for an audit reform, with particular reference to Germany in the wake of the Wirecard fraud scandal. It provides a useful overview and analysis of the different options that have been discussed to improve audit quality in the UK and the EU during the past years.

Functional deficits in the German audit market

[DICE study,May 2022] There are fundamental functional deficits in the German audit market when it comes to auditing PIEs.

Auditing in Europe: PIE Market structure

[FAZ study, April 2022] The objective of this study is to take a closer look at the market for audits in the PIE segment seven years after the passing of the EU audit reform. Taking the examples of three countries - Germany, France and the UK, the study aims to illustrate the size of the PIE market for audits and to depict the concentration of the market with an eye to the Big 4 and the Next 10 in...

Joint audit series, part 1

The Wirecard case in Germany has sparked a comprehensive social and political debate around auditing and the role of the auditor. The German government reacted to this and set up the Wirecard Investigation Committee.

Joint audit series, part 2

Today, the audit market in Germany is characterised by the dominance of four audit firms, the so-called Big Four: PwC, KPMG, EY and Deloitte. This high market concentration can impair audit quality due to lack of competition. This has become even more clear since the Wirecard case.

Joint audit series, Part 3

Since the Wirecard case, the confidence of the capital markets and the public in the quality of audit has once again plummeted. Joint audit can be an effective instrument to restore this lost trust: joint audit increases the quality of audit through the four-eyes principle and the joint responsibility of the auditors.

Joint audit series, Part 4: Experiences in Austria

What should reporting and auditing of companies look like in the future? This is a question that market participants all over Europe are dealing with. The aim is to improve the quality of audit. Experiences in Austria show that this can be achieved with alternative models such as joint audit. Here, joint audit is already mandatory in some situations – they are a step ahead.