Grant Thornton CEO Reacts To GAO Report, Dismisses Barriers To Entry For Smaller Firms

Last week, the GAO's SOX-mandated study on the accounting industry found that smaller firms faced significant barriers in competing with the "tight oligarchy" of the Big Four. We asked Edward Nusbaum, the CEO of the fifth-largest accounting firm Grant Thornton, for his reaction to the study, its impact on GT, and his thoughts on the industry at large.

Last week, the GAO published its SOX-mandated study on accounting firm consolidation and competition. The study found that accounting firms outside the Big Four faced significant barriers to entry - including lack of staff, industry and technical expertise, capital formation, global reach, and reputation - into the large public company audit market.

Do you agree with the assessment? And is that assessment even relevant to Grant Thornton's middle-market strategy?

We disagree with the conclusion that Grant Thornton and other national firms have...