The article "current trends in the audit industry." This article shows how the changes in the market
for audit services and the economic environment have impacted the operation of the audit
industry. It has highlighted that the current audit industry is facing many important issues that are
addressed in the current trend of auditing. It includes the impact of advances in technology and
greater access and availability to data; the impact of an increased focus to enhance their non-audit
services with a specific focus on consulting or advisory services; commoditization of the audit; and
the relevance of the traditional audit and perceived value (Current trends in the audit industry -
international ethics standards, 2021). The mentioned issues in the auditing are the major concern
for the auditing industry that needs to be solved by the professionals. Thus, this article has
highlighted some of the important factors that influence the current trends in the auditing industry,
including firm revenue and growth; partnership model and the threat of litigation; competition in
the audit market; impact of emerging technologies on the audit; governance within the global
network structure; and the extent and quality of resources in the labour market (Current trends in
the audit industry - international ethics standards, 2021). Here, I found the most concerning trend is
the rising competition in the audit market. Nowadays, basic audit services are provided by almost
all auditing companies, so how can one company be fitted into the competition? In general, some
auditors of the company make some changes in the lowering of audit fees that attract many clients'
attention, but it is not always effective as the focus should always be on the quality of auditing
service, not the cost of the services. Thus, the auditing companies need to focus on the costs of
educating new auditors, the industry and technical expertise level of the auditor and staff, access to
funding and expansion in infrastructure, and increased litigation risk and insurance costs to be in
the competition. However, much-advanced software is introduced to the auditing industry; the
companies need to ensure the proper utilization of it. After reading this article, I have found some
changes in my opinion on the current climate in auditing. Here, it is essential for all the auditors to
get proper training in the specific field along with a better understanding of five fundamental
principles of accounting ethics, so that company can stand out in the rising competition.
The COVID-19 pandemic has created challenges for audits as the world changed how most of us
work and businesses operate. c Before the pandemic, people went to the office and had in-person
face-to-face meetings. c Physical invoices and check payments were received. c If a copy was needed,
it was easily done with a press of a button on the copier. c Since the pandemic, people are working
from home, and virtual meetings are held. c Invoices are emailed and electronic payments are
required. c Auditors have also changed the way they are working. c They are working remotely
instead of at the client’s locations and virtual meetings are conducted to discuss the audit with
other colleagues or with the client. c Technology companies needed to enhance and strengthen their
programs to accommodate the demand of the world as business stand-alone servers are few as
they shift to storing data in the cloud. c What is concerning is to me the technology. c Is the
technology we have today able to handle any cyberattacks of tomorrow? c It appears that we are
one step behind after the cyberattack happen. c For example, during Covid, my previous employer
was attacked with ransomware. c Their system was down for 1-1/2 months which disrupted their
business tremendously. Technology companies such as Microsoft consistently are upgrading or
updating their system. c With my current employer, it seems that every time an upgrade or update is
completed, we issue with our system. c Either a custom report is no longer working or the data
warehouse is missing data.
References
Current trends in the audit industry - international ethics standards (2021). Retrieved October 25,
2022, from https://www.ethicsboard.org/system/files/meetings/files/Agenda_Item_F-3_-
_Current_Trends_in_the_Audit_Industry.pdf
Deloitte. (2022, February 23). 2022 audit committee agenda: ESG, cyber risk, digital finance.
Retrieved from https://deloitte.wsj.com/articles/2022-audit-committee-agenda-esg-cyber-risk-
digital-finance-01645639384
Lynch, E. (2021, May 19). Trends shaping the future of audit. Retrieved from
https://info.kpmg.us/news-perspectives/advancing-the-profession/trends-shaping-the-future-of-
audit.html
