Toronto (ots/PRNewswire) – Accounting firms are struggling to assemble teams with diverse skill sets that can perform the audits of the future
Investing in technology is a key priority for accounting firms heading into 2024, while mitigating ongoing skills shortages and keeping up with new legislation remains a challenge for many in the industry. This comes from the 2024 State of Accounting Firms Trends Reportout, the of Caseware Internationala global leader in cloud-based auditing, financial reporting and data analytics solutions.
The 2024 State of Internal Audit Trends Report from Caseware highlights the need for technological expertise amid ongoing challenges in attracting and retaining top talent.
Caseware annually explores the global perspectives of accounting and auditing professions. Both reports are based on extensive surveys of practitioners from around the world conducted in late 2023.
State of Accounting Firms – Results
Technology adoption
Companies are clearly committed to investing in technology: 77% of respondents said their financial expenditure will increase either significantly or slightly over the next two years. This represents an 8% increase compared to the 2023 survey results. Innovative technologies are quickly entering the accounting landscape, with generative AI being a notable example. Although the software only came to market the year we conducted our survey, more than 10% of respondents said it is in the top three areas for planned software investment in 2024. Order fulfillment software (invoice verification, audit and compilation, tax, etc.) was cited by 21% of respondents as one of the top three areas of investment for the coming year.
Talent shortage
Recruiting and retaining talent continues to be a key issue for accounting firms. Overall, 88% of respondents reported that recruiting and retaining talent is somewhat challenging, with 47% describing it as somewhat difficult and 41% describing it as extremely difficult. However, companies are starting to take action: 32% are offering training programs to upskill existing employees, 27% are offering newly created roles and skills within their company, and 24% are choosing to use an external talent search service.
David Osborne, Chief Executive Officer of Caseware International, noted: “Technology is a magnet for those considering entering the workforce. “The companies that fail to meet the expectations of tomorrow’s accounting and auditing professionals will see their talented, dynamic employees leave for competitors that offer a more tech-savvy, advanced environment.”
Laws and Regulations
Dealing with new laws and regulations was the most frequently cited challenge by survey participants, with 16% confirming that this was their main problem. This highlights the pressure companies are under to keep up with today’s dynamic and fast-moving regulatory climate. As the global economic and regulatory environment becomes increasingly complex, clients are increasingly turning to their accountants for advice and guidance. As a result, demand for customer advisory services is increasing – 76% of respondents said their company is experiencing either significant (23%) or small (53%) growth in this area.
State of internal audit – results
Talent shortage
Finding and retaining qualified auditors is a little easier than last year, but still difficult. When asked how difficult it is to find and retain the right talent for their company, almost 90% of respondents said it was either a lot or somewhat challenging.
With demand for technological expertise particularly high in internal audit departments, it is clear that accounting firms want to build teams that are equipped to audit the future. When examining the skills departments sought, 18% of respondents cited data science, while IT audit and cybersecurity accounted for 15% and 12%, respectively. Artificial intelligence accounted for 9% of responses, while fraud auditing was the most commonly searched non-technical skill (10%) and ESG accounted for 8%.
Data analysis
Many companies rely on data analysis to support and improve their auditing activities. When asked about using data analytics in their audits, 21% said they now use analytics in all audits, while another 57% said they selectively use data analytics in some audits.
Ian Kirton, an internal audit expert, commented: “It’s no surprise that the use of data analytics is increasing. In this way, auditors face the challenge of achieving more with less. Analytics help them identify risks, reassess controls and conduct continuous audits.”
Achieve more with less
A key internal pressure for audit teams is the need to do more with less time and resources – 30% of respondents cited this as their most important task. Auditors are faced with higher reporting requirements, e.g. B. ESG, DEI and culture, often without a corresponding increase in budget, so teams need to be as efficient as possible in carrying out their reviews.
Trends to watch:
2024 State of Accounting Firms Trends Report
- Although 73% of respondents said they are either currently implementing DEI initiatives in their organization or plan to do so, a shocking 27% said they are not and have no plans to do so.
- Law firm modernization continues: 76% of law firms said they use either pure cloud tools or a mix of desktop and cloud to manage their law firm. This is a 17% increase over 2023 results.
- 17% of respondents use offshoring to address the shortage of skilled workers in accounting.
2024 State of Internal Audit Trends Report
- Only 10% of respondents said that hiring and retaining the right talent for their company is not a challenge at all.
- 76% of respondents said the number of employees in their internal audit department either increased or remained the same over the past year.
- Last year, 45% saw an increase in ESG-related audit work.
Information about Caseware International
Caseware is the world’s leading provider of desktop and cloud-enabled auditing, assurance, financial reporting and data analytics solutions for accounting firms, corporations and government regulators. Caseware’s innovative tools and platforms help more than half a million customers in 130 countries work smarter, go deeper and see more by turning insights into impact. Further information can be found at: www.caseware.com.
Note for editors
Survey methodology
Caseware conducted the 2024 State of Accounting Firms Survey from the second week of September to the second week of November 2023. It was offered in five languages: English, Spanish, French, Dutch and German, and 2,054 validated surveys were completed. Responses were received from 49 countries, with the highest participation rates coming from the United States, Canada, South Africa and the United Kingdom.
The most frequently chosen title among respondents was Partner/Managing Partner, with just over a third (34.6%).
Caseware conducted the 2024 State of Internal Audit Survey from the second week of September to the second week of November 2023. It was distributed in five languages – English, French, German, Dutch and Spanish – and 1,068 people completed the survey.
The most common job title among survey participants was “internal auditor” at 21%, followed by “internal audit manager” at 16% and “head of internal audit” at 14%.
For media inquiries please contact: Elise Sallis, Head of Global Communications, elise.sallis@caseware.com, +44 (0)7515 538014; Jill Quinn, Director Corporate Communications, jill.quinn@caseware.com, 1-416-737-0703