
The delivery of an effective, accurate and reliable audit is often the mark of high quality within the accounting profession.
It should come as no surprise then that, traditionally, firms have held audit services close to their chest – a task too sacred to entrust to external parties.
The result is that many firms are increasingly finding themselves overwhelmed with new audit work, with many struggling to recruit the expertise that they need in an ever-shrinking skills gap.
The result? The quality of audits delivered suffers. This isn’t just hearsay, the Financial Reporting Council reported at the end of 2023 that 62 per cent of audits required more than limited improvements. This trend was more apparent among firms outside the Top 7.
The notion of outsourcing audit services, once a distant thought, is now emerging as a strategic move for forward-thinking firms, who are looking further a field to upskill their teams and deliver a better service to more clients.
Breaking tradition: The outsourcing shift
Historically, audits have been an internal affair for a myriad of reasons:
- Sensitivity of financial data
- Complex nature of audit tasks
- Perceived need for direct oversight
However, these reasons, while valid, are no longer insurmountable barriers. The digital age has brought about advances in secure data sharing, communication technologies, and global professional networks, making the idea of outsourcing audits not just feasible but highly advantageous.
The pendulum is now swinging very much in the opposite direction and offering a host of benefits for firms willing to “dip their toe in the water”. These include:
- Access to global expertise: Outsourcing your audit services opens the door to a world of expertise. Offshore experts often come with specialized knowledge and experience in various industries, bringing fresh perspectives and insights to your audit process. This global talent pool ensures your audits are thorough, compliant, and aligned with the latest international standards.
- Cost efficiency: One of the most compelling reasons to consider outsourcing is the potential for significant cost savings. Offshore teams can offer competitive pricing models due to lower operational costs in their regions. These savings can then be passed on to your clients or reinvested into your firm, driving growth and innovation.
- Enhanced focus on core business activities: By outsourcing audit tasks, your firm can redirect focus and resources towards core activities and strategic goals. This means more time for client engagement, business development, and expanding your service offerings, without the constant pressure of audit deadlines looming over your team.
- Scalability and flexibility: Outsourced audit services offer unparalleled scalability and flexibility. During peak audit seasons, scaling up your capacity can be as simple as a request to your outsourcing partner, without the need to hire and train additional staff. Conversely, during slower periods, you can scale down, ensuring your firm operates at optimal efficiency year-round.
- Leveraging technology and innovation: Many offshore audit service providers are at the forefront of leveraging technology to enhance the audit process. Partnering with these providers can give your firm a competitive edge, offering your clients the most advanced, secure, and efficient audit services available.
Venturing into the realm of outsourced audits requires careful planning and the right partner. To find out why our audit services at GI Outsourcing might be the perfect fit for your organisation, please contact us.