The relevant question seems to be can a CPA firm plan and conduct a high-quality, low-risk audit in the first year of an engagement?
Given the state of technology in the auditing and assurance services industry, the training available to people who enter the profession, and the amount of guidance provided by GAAS, any serious effort to conduct a high-quality audit can and will succeed.
While audit costs are apt to increase, the relevant question is how much are shareholders willing to pay for a high-quality independent audit?
When you realistically consider all the discretionary costs involved in both the management and oversight of a publicly owned company, it is hard to imagine shareholders or their independent board representatives becoming overly concerned about the costs of a high-quality independent audit.