William Parrett, CEO of accounting firm Deloitte Touche Tohmatsu, on Monday said size should not dictate the ability of an auditor to cope with in increasingly global client base, predicting that consolidation of medium-sized auditing firms would boost competition.

His comments come a month after the US Chamber of Commerce warned that the auditing profession was "on the edge of disaster" if regulators, business and auditors did not tackle the enormous litigation liabilities faced by the "big four" firms.