DeAngelo argues that larger auditors,such as those commonly referred to as the 'Big 4',are of lower quality than other auditors because larger auditors have 'more to lose' by failing to report a discovered breach in a particular client's record.

Question

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The statement is false. DeAngelo argues that larger auditors may feel more pressure to not report a breach in order to maintain the client relationship and avoid negative consequences, but this does not necessarily mean that they have lower quality than other auditors. Quality of audit work depends on many factors, including expertise, resources, and compliance with standards and regulations, which can vary across audit firms regardless of their size.

DeAngelo Argues That Larger Auditors,such as Those Commonly Referred to as the 'Big