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 is 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 labor 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 main 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.
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_It
em_F-3_-_Current_Trends_in_the_Audit_Industry.pdf
