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Audit quality is the backbone of trust in financial reporting. When done right, it safeguards investor confidence, enhances corporate governance, and drives responsible decision-making. But achieving high audit quality isn’t a one-time act—it’s a systematic, ongoing commitment to discipline, detail, and professional integrity.

In today’s dynamic audit landscape, marked by increasing regulatory scrutiny and complexity in business transactions, quality can’t be left to chance. It must be engineered into every stage of the audit lifecycle—from planning to conclusion.

Here’s how firms and audit teams can embed quality deeply into their audit delivery frameworks:

1.  Structured Audit Training: Building a Strong Foundation

Audit quality starts with people. High-performing audit teams are developed through robust, real-world training that goes beyond theoretical standards. Training must:

• Focus on practical applications of audit procedures and emphasis on WHY
• Use case-based scenarios that reflect real-world audit situations
• Include sessions on emerging risks like going concern, macro economic impact, impairment of non-performing division, and revenue recognition complexities
• Emphasize behavioral skills like assertive communication and professional scepticism

Well-trained auditors are better equipped to ask the right questions, challenge management assumptions, and identify red flags early in the process.

2. Highly Streamlined Workpapers: Clarity Drives Quality

Overly complex or inconsistent audit documentation is a frequent roadblock to quality. Workpapers should be designed with clarity, traceability, and logical flow in mind.     Streamlined workpapers:

• are designed to include clarity of audit procedures to be performed and connects testing to risk assessment and planning decisions
• eliminate duplication and clutter
• defines objective and articulate conclusion clearly
• highlight noted adjustments and deficiencies clearly
• Make review and supervision faster and more effective

Firms investing in simplified, standardized digital templates often report faster close-out cycles and fewer post-issuance findings.

3. Real-Time Supervision: Timely Review Avoids Rework

Delayed partner or manager involvement can significantly affect audit quality. Effective audits are marked by:

• Early engagement by partners during planning
• Ongoing involvement of managers during fieldwork
• Real-time feedback loops to help juniors learn and correct as they go

This hands-on approach reduces last-minute surprises, ensures better documentation, and encourages collaborative problem-solving throughout the engagement.

4. Easy Access to Senior Team Members: Culture of Openness

High-quality audits flourish in a culture where juniors are not afraid to ask questions, escalate concerns, or seek guidance. When firms create an environment where:

• Seniors make time for juniors
• Daily stand-ups and check-ins are routine
• Escalation mechanisms are clear and judgement-free

It drives accountability and faster resolution of critical audit issues.

5. Professional Scepticism: A Skill, Not Just a Standard

Applying professional scepticism isn’t about being cynical—it’s about maintaining an inquisitive mindset throughout the audit. It means:

• Challenging the completeness and reliability of evidence
• Being alert to contradictory information
• Documenting rationale for accepting management’s estimates and judgments
• Including unpredictability testing on high risk audit area

Firms can improve scepticism by embedding it in training, including it as a discussion point during planning and throughout review cycle, and building it into audit software prompts.

6. Harnessing Technology and Data Analytics

Quality can’t scale without technology. Forward looking firms are using tools to:

• Run full-population testing instead of samples
• Identify outliers using visualization dashboards and testing them
• Automate routine procedures (e.g., roll-forwards, re-performance of calculation)

By combining human judgement with digital tools, firms can reduce the margin for error and increase audit insight – especially in high-volume, high-risk areas.

7. Root-Cause Analysis and Continuous Improvement

After each audit cycle, high-performing teams pause to ask: What could we have done better?

• Conducting structured post-engagement reviews
• Capturing lessons learned
• Feeding insights back into methodology, training and next year audit planning

These feedback loops help continuously raise the quality bar and create a culture of learning, not blame.

Conclusion: Quality is a Mindset, Not a Milestone

Audit quality is not just about avoiding mistakes; it’s about getting it right the first time. It’s about cultivating the right people, processes, and practices—and being relentless in the pursuit of excellence.

Across the U.S., U.K., and other mature markets, accounting firms are under acute pressure to find and retain talent.

In the U.S. alone, the accounting workforce has shrunk by nearly 10% between 2019 and 2024 and is growing – that’s tens of thousands fewer professionals in an already strained ecosystem.

Meanwhile, workloads are rising, client demands are evolving, and quality expectations have never been higher.

Some firms are taking bold, long-term steps:

• RSM US plans to double its India headcount to 5,000 by 2027
• Moss Adams and others are setting up wholly owned subsidiaries in India to build control, consistency, and scale
• Sikich, CohnReznick, Elliot Davis, Armanino, Withum and 50+ others

What stood out most in the Reuters article is that this isn’t future planning – this is now to tackle talent crunch of upcoming years.

Having followed similar patterns in the UK, it’s clear this is more than a U.S. phenomenon. Firms globally are rethinking how they access skills, build delivery models, and future-proof their operations.

As the industry hits a critical inflection point, it raises an important question for all of us in professional services: are we adapting fast enough?

Introduction

Globalization has made cross-cultural collaboration essential for growing and mid-sized accounting firms. UK and US firms increasingly engage teams in India, seeking talent and efficiency. Yet cultural differences can lead to misunderstandings, missed deadlines, and frustration. The goal: transform these differences into a strategic advantage. 

Why UK and US Firms Are Cautious

UK and US firms often approach offshore collaboration cautiously, citing:

• Quality Concerns: Fear that standards may not align across borders.
• Hidden Costs: Extra management time to coordinate offshore teams.
• Communication Gaps: Misunderstandings due to indirect or ambiguous communication styles.
• Client Perception: Concerns that clients may question service quality.
• Data Security: Reluctance to share sensitive client data offshore.

These are valid concerns but manageable with the right structures.

Indian Work Culture: Key Nuances

• Indirect Communication: Politeness often trumps directness. “Yes” may mean “maybe.”
• Hierarchy: Respect for seniority limits open disagreement.
• Relationship-Focused: Trust and rapport are central to collaboration.
• Flexible Time: Deadlines can be fluid; planning buffers are key.
• Defined Roles: Initiative outside one’s scope may be rare.

Western Work Culture: Key Insights for Indian Teams 

• Direct Feedback: Feedback is about work, not personal.
• Explicit Communication: Encouraged to communicate clearly to avoid ambiguity.
• Egalitarian: Juniors are invited to contribute ideas.
• Punctuality: Time is respected; delays need proactive notice.
• Informality: First-name basis, relaxed dress codes in appropriate settings, open and direct discussions are the norm.

Big Four and Leading Firm’s Best Practices

• Unified Culture: Shared values and methods across geographies.
• Cross-Cultural Training: Programs on communication, etiquette, and leadership.
• Local Leadership Mix: Embedding culturally aware leaders in all offices.
• Clear Processes: Standard SOPs, defined roles, and communication norms.
• Celebrate Diversity: Cultural exchange events to build team bonds.

Common Pitfalls & Fixes

• Misinterpreting “Yes”: Confirm understanding; ask open-ended questions.
• Stereotypes: Promote cultural education and personal connections.
• Ignoring Hierarchy: Respect local structures; give feedback privately.
• Skipping Relationship Building: Take time for introductions and informal chats.
• Unclear Roles: Document responsibilities and workflow explicitly.

Strategies for Success

• Invest in Training: Make cultural awareness a core skill.
• Culture Coaches: Appoint culture coaches who understand both your culture and Indian work cultures to guide teams, mediate differences, and ensure smooth collaboration.
• Structured Communication: Use overlapping hours, written follow-ups.
• Buddy Systems: Pair cross-cultural team members for personal rapport.
• Celebrate Together: Recognize holidays and milestones from all cultures.

Leverage Strengths: Allocate tasks to play to each culture’s strengths.

Other Key Distinctions

Aspect	Western (UK/US)	India
Small Talk	Brief, casual (weather, weekend, sports)	Longer, personal (family, health, background)
Feedback	Open, honest, often direct	Softened, indirect to preserve harmony
Decision-Making	Quick, collaborative, individual initiative	Top-down, senior approval required
Work Hours	Balanced, values work-life separation	Long hours common, after-hours availability expected
Email Style	Brief, direct, informal tone	Formal, respectful language, detailed

Conclusion

The Big Four and other leading firms succeeded because they embraced the journey, learned through experience, and built strong cross-cultural foundations. With the right approach, growing and other established firms can do the same, creating high-performing, globally integrated teams. As the profession undergoes a significant shift, working across cultures is no longer optional – it’s essential. 

At GroWize, we leverage our deep cross-cultural expertise to help global firms build thriving, high-quality teams in India, turning cultural diversity into a lasting competitive advantage.

A Strategic Growth Move for Accounting and CPA Firms

1. Executive Summary

In an increasingly competitive accounting industry, firms that prioritize scalability, operational efficiency, and talent access are positioning themselves for sustainable growth.
Building a Global Capability Centre (GCC) in India has evolved from being a trend among Big Four firms to becoming a strategic imperative for forward-thinking mid-sized and large accounting practices in the US and UK.

This whitepaper outlines why establishing your own Capability Centre is a transformational step, the key success factors, and how firms like RSM, KPMG, Grant Thornton, and others are already leveraging India’s vast potential.

Finally, it highlights how GroWize can help accounting firms set up their fully managed Capability Centre in India.

2. What is a Capability Centre?

A Capability Centre is an extension of your firm — a fully owned, fully managed offshore branch that mirrors your firm’s quality, culture, and operational standards.
Unlike traditional outsourcing models, a Capability Centre provides full control, transparency, and integration into your global operations, allowing firms to build deep technical expertise and client service excellence offshore.

Today, nearly all Big Four and Top 10 firms operate their GCCs in India — and the model is now rapidly being adopted by mid-sized and growing firms too.

3. Why Capability Centres Are Critical for the Future

• Severe talent shortages in the US and UK are limiting firm growth.
• Rising operational costs are placing increasing pressure on margins. Forward-looking firms are building their own Capability Centres to build long-term operational resilience.
• Demand for faster, better client delivery is at an all-time high.

Capability Centres address these challenges by enabling firms to:

• Access a vast, qualified, English-speaking workforce.
• Build dedicated teams aligned to their firm’s DNA.
• Achieve 30–40% cost optimization compared to existing costs.
• Expand service lines across audit, tax, accounting, advisory, due diligence, and more.

4. Global Accounting Talent Trends

Combined Size of Accounting Professionals (2024):

Region	No. of Accounting Professionals (Including qualified)
United States	1.39 million
United Kingdom	526,000
India	1.6 million
Global Total (approx.)	6.7 million

(Source: IFAC, AICPA, ICAEW, 2024 reports)

Despite these numbers, both the US and UK face severe skill gaps at mid and senior levels — driving firms to look offshore for quality talent.

5. Why India is the Ideal Destination

India offers:

• A deep talent pool of qualified Chartered Accountants and Accounting graduates.
• English as the primary business language.
• Lower attrition rates compared to other offshore destinations.
• A stable, fast-growing economy.
• A strong professional services culture aligned with international standards.

Over the past decade, India has become home to Capability Centres of not just Big Four and other leading firms, but global tech leaders like Apple, Google, Microsoft and leading companies across other sectors – who recognized India’s strategic advantage early.

6. Common Challenges Firms Face

• Lack of knowledge about Indian business environment
• Unfamiliarity with regional talent markets
• Concerns over real estate and operational management
• Cultural differences and people management nuances
• Misconceptions about control and quality

With the right partner, these challenges are easily navigable, turning perceived risks into strategic strengths.

7. Strategic Advantage of Setting Up Your Own Centre

• Full transparency and ownership
• Building a firm-aligned culture from day one
• Direct access to top-tier, qualified talent
• Seamless integration into firm’s operations
• Long-term operational efficiency and cost control
• Strategic insulation from future talent market volatility

8. Common Myths About Capability Centre

Myth	Reality
Setting up a GCC = Outsourcing	GCC is full control, full ownership, full integration.
Only Big Firms can do this	Mid-sized firms are increasingly succeeding with lean, smart GCC setups.
It’s complex and risky	With the right local partner, it’s structured, manageable, and highly successful.

 

Opening Insight

The audit profession is undergoing a quiet but powerful transformation.

What began as a short-term shift during global disruption has evolved into a long-term structural change in how audit work is delivered, reviewed, and resourced across geographies.

For small and mid-sized CPA firms in the United Kingdom and the United States, this is no longer just about flexibility. It is about long-term sustainability, quality, and people. It is about managing capacity while maintaining control.

This brief outlines what audit firms are experiencing on the ground, the models that are working, and the approaches that are failing to keep up. If you are in a leadership position at your firm, this is a conversation you are already having—or will soon need to have.

What Firms Are Really Facing

Remote audit is not just about staff working from home. It has become a fundamentally distributed delivery model. Yet many firms are still using systems and processes built for physical offices.

Here is what we frequently hear from audit firm leaders:

• Audit engagements are dragging into uncomfortably long review cycles, not because of complexity, but due to overloaded seniors and poor delegation of file prep
• Assistant managers and managers are firefighting across 10–12 engagements, often spending more time coordinating and cleaning up work than adding value
• Onshore teams are stretched thin, juggling fieldwork, admin, and staff training—creating a culture of survival, not scale
• Workflow tools are in place, but teams still cannot keep up, because capacity—not technology—is the core constraint

This is not just about inefficiency. This is about structural fatigue that erodes morale, client satisfaction, and growth potential.

A 2023 study published by the American Accounting Association found that offshoring in audit can drive significant time efficiencies, especially when routine and repeatable tasks are shifted to trained offshore staff. Firms leveraging redesigned workflows saw a noticeable reduction in cycle time and improved consistency in file preparation.

Why This Demands Attention

Clients still expect responsiveness. Staff still need support. Reviewers still need files that are ready, consistent, and complete.

Remote audit delivery can work—but only when it is structured properly. That includes:

• Clear separation between file preparation and review
• Offshore support teams who are audit-trained and follow your methodology
• Continuity of team members, not just short-term capacity
• Ownership and accountability within defined roles

The future-ready audit firm is not just remote. It is designed to deliver consistently—no matter where the work happens.

According to recent industry studies, firms that embraced structured offshoring models have reported time savings of up to 35% in audit fieldwork and documentation preparation, enabling better use of senior staff for review and planning.

What Firms Doing It Well Have in Common

We have seen first-hand how firms that get this right tend to:

• Treat remote delivery as a process, not a workaround
• Work with specialists, not generalists or glorified recruitment firms
• Invest in team alignment and training—onshore and offshore
• Build delivery teams that take ownership of the work being produced

These observations are based on efficiencies witnessed in our founders’ prior roles and client engagements before launching GroWize—where well-integrated offshore audit teams reduced turnaround times, improved staff retention, and increased audit bandwidth, especially during peak seasons.

In several observed cases, firms that embedded offshore teams for audit reported not just cost savings, but also measurable gains in audit cycle efficiency and audit documentation consistency.

Where Remote Audit Breaks Down

Firms struggling with remote delivery often fall into one or more of these traps:

• Using generic outsourcing providers with little audit knowledge
• Relying on a few offshore individuals without proper oversight
• Hiring reactively to fill gaps without long-term fit
• Working with ad hoc freelancers with no continuity

These issues result in double reviews, frustrated teams, higher attrition and even lost clients.

A Global Capacity Gap

According to the NPAG Strategy Report:

• The U.S. Bureau of Labor Statistics projects a 4 percent growth in demand for accountants and auditors through 2032, while talent pipelines remain constrained
• Globally, 28 out of 33 professional bodies report talent shortages
• Entry-level roles are facing the sharpest strain, leading to bottlenecks at the base of the audit pyramid

Firms need to solve this imbalance—not just in headcount, but in delivery design.

Bringing It Together

At GroWize, we support firms in building structured offshore audit capacity that actually works. No generic outsourcing – just excellent audit support.

We do this as per your methodology and your firm culture. Delivered by people trained to support real audit processes—not just complete checklists.

Whether you are exploring offshore support, rethinking your team structure, or building a captive unit, we can help you pressure-test your current setup—or share how other firms are making it work.

If this brief reflects the challenges you are seeing internally, we would be glad to talk.

Opening Insight

The accounting profession is at a crossroads. Faced with talent shortages, escalating operational costs, and increasing client demands, CPA firms are exploring innovative strategies to maintain competitiveness and deliver quality services. One such strategy gaining traction is offshoring audit work. This brief delves into the advantages and disadvantages of offshoring, providing a balanced perspective to aid firms in making informed decisions.

The Case for Offshoring Audit Work

Offshoring involves delegating specific tasks or processes to professionals in other countries. For CPA firms, this approach offers several compelling benefits:

• Access to a Global Talent Pool:

•  Offshoring opens the door to a diverse and skilled workforce. Countries like India and the Philippines have a wealth of qualified professionals in accounting and finance, enabling firms to tap into expertise that may be scarce locally.  cite turn0search5

• Cost Efficiency:

Leveraging lower labor costs in certain regions can result in substantial savings. These financial benefits allow firms to invest more in technology, training, and client services.  cite turn0search5

• Enhanced Scalability and Flexibility:

Offshoring provides the agility to adjust workforce size based on workload demands. During peak seasons, firms can scale up operations without the long-term commitment of local hires, ensuring timely delivery and client satisfaction.  cite turn0search5

• Focus on Core Competencies:

By offshoring routine tasks, onshore teams can concentrate on high-value activities such as client advisory and strategic planning, enhancing overall service quality.  cite turn0search5

Potential Drawbacks of Offshoring Audit Work

While the benefits are notable, it’s crucial to consider the inherent challenges:

• Quality Control and Training:

Assigning tasks to offshore teams can sometimes lead to inconsistencies, especially if the offshore staff lacks experience or proper training. High staff turnover and assigning inexperienced staff to audit work can frustrate clients and lower audit quality. cite turn0search9

• Data Security and Confidentiality:

Sharing sensitive financial information with offshore entities raises concerns about data protection. Ensuring that offshore providers adhere to stringent security protocols is paramount to maintain client trust and comply with regulations. cite turn0search10

• Regulatory Compliance:

Different countries have varying regulatory standards. Offshore providers may not be familiar with specific local regulations, increasing the risk of non-compliance and potential legal consequences. cite turn0search10

• Cultural and Communication Barriers:

Differences in language, work culture, and time zones can pose challenges in coordination and collaboration, potentially impacting efficiency and accuracy.  cite turn0search5

Mitigating the Challenges

To harness the benefits of offshoring while minimizing risks, firms should consider the following strategies:

• Choose the Right Offshore Partner:

Collaborate with providers that specialize in auditing and understand the nuances of the profession, rather than generic outsourcing firms or headhunters. This ensures that the offshore team possesses the requisite skills and knowledge.

• Establish Robust Training Programs:

Invest in comprehensive training for offshore staff to align them with the firm’s methodologies, quality standards, and regulatory requirements.

• Implement Stringent Quality Control Measures:

Develop clear protocols for work review and feedback to maintain high-quality outputs and address issues promptly.

• Prioritize Data Security:

Ensure that offshore partners comply with international data protection standards and have robust security measures in place to safeguard sensitive information.

• Foster Effective Communication:

Utilize collaboration tools and establish regular check-ins to bridge cultural and time zone differences, ensuring seamless integration between onshore and offshore teams.

Final Thought

Offshoring audit work presents a strategic opportunity for CPA firms to enhance efficiency, reduce costs, and access global talent. However, it’s not without its challenges. By carefully selecting experienced partners, investing in training, and implementing robust processes, firms can successfully integrate offshoring into their operations. A thoughtful approach ensures that the benefits outweigh the drawbacks, positioning the firm for sustainable growth and enhanced client satisfaction.

If your firm is contemplating offshoring or seeking to optimize existing offshore operations, we at GroWize are here to assist. Our expertise lies in crafting tailored offshoring strategies that align with your firm’s unique needs and objectives.

Perception vs Reality: Australia’s Stance on Offshoring Audit Work

Offshoring—the relocation of business processes to another country—has matured into a core strategy in the global business ecosystem. In Australia’s auditing industry, offshoring is increasingly used to expand capacity, address skill shortages, and contain operational costs.

A 2024 study by Bond University researchers Keith Duncan and Tim Hasso (the “Study”) offers a comprehensive, data-rich view of offshoring in the Australian audit sector. Based on survey responses from 368 senior auditors across firm sizes (Big Four: 30%; Mid-tier: 22%; Small firms: 48%), the findings highlight both the current state and the growing future of audit offshoring.

The executive summary as extracted from the Study:

Who’s Offshoring and How Much?
Offshoring adoption is closely tied to firm size. All Big Four firms engage in offshoring, compared to just 15% of mid-tier firms and 1.6% of small firms.

Among firms that offshore, an average of 12% of total audit hours are conducted offshore in 2023/24. This is expected to double to 25% within the next two years. While few small firms offshore (3 participant firms), those that do offshore up to 20% of their audit hours — and plan to grow that to 43%, outpacing larger firms. This suggests smaller firms view offshoring as a strategic lever for growth and efficiency.

What’s Being Offshored?

Tasks requiring lower professional judgment—such as substantive testing, account confirmations, and analytical procedures—are most commonly offshored. However, the trend is evolving. Firms are increasingly offshoring more complex tasks, including internal control testing and financial statement reviews. Still, risk assessment remains primarily onshore due to its judgment-intensive nature.

Why Some Firms Still Resist

Among those that don’t offshore, the top reasons include:

• Negative perception of offshore quality (49%)
• Client relationship seen as a competitive advantage (43%)
• Client preference for onshore audits (30%)

Is Quality Really a Concern?

The concern over offshore quality is not supported by the experience of firms that do offshore. The Study found that 82% of offshoring firms are satisfied with the quality of offshore work.

Satisfaction was rated highest in:

• Meeting deadlines: 4.5 / 5
• Team collaboration and work quality: 4.2 / 5

Interestingly, mid-tier firms reported the lowest satisfaction levels, potentially reflecting limited experience with managing offshore resources. Conversely, small firms—despite their limited exposure—reported the highest satisfaction, possibly due to careful task selection and scale.

Offshoring vs. Client Relationships: A Modern Perspective

It’s understandable that firms worry about weakening client relationships through offshoring. In the past, physical presence at the client’s office played a central role in building trust. However, today’s post-COVID, digital-first work environment has reshaped this dynamic.

With most client interactions now happening remotely, the distinction between onshore and offshore teams is blurred. Whether an auditor is in Sydney or Mumbai, they’re often on the same Zoom call. This reduces the relevance of geographic proximity in relationship-building.

Moreover, when routine tasks are offshored, onshore engagement leaders are freed up to focus on what clients value most: advisory insights, responsiveness, and strategic support. The right offshore partner, combined with thoughtful task delegation, can actually enhance client relationships, not hinder them.

Do Clients Really Prefer Onshore Work?

While 52% of firms have had clients preclude offshoring, none were from small firms. This suggests that client pushback is relatively uncommon—and when it occurs, it’s typically driven by data security concerns, not perceived quality.

To address this, many firms implement safeguards like remote desktop access and local data hosting to satisfy client and regulatory requirements. It’s worth noting that government clients do typically mandate onshore work.

Conclusion: Offshoring Is Strategic, Not Just Cost-Cutting

Offshoring in auditing is no longer just about saving money—it’s about unlocking capacity, adapting to talent shortages, and strengthening client service delivery. As firms refine their models through robust training, secure data practices, and strategic task allocation, offshoring is becoming more sophisticated and sustainable.

Still, the future of offshoring hinges on more than operational efficiency. It must also balance considerations around local job development, graduate training, and reputation management. The real shift is not just how much is offshored—but in how it’s done — and why.

About Us – GroWize: Your Trusted Offshore Audit Partner

If your firm is considering offshoring or wants to enhance existing offshore operations, GroWize is here to help. We offer tailored capability-building solutions to support high-performing hybrid audit teams:

• Pre-vetted Audit Professionals
  Access highly qualified, globally trained audit staff familiar with international standards.
• Customizable Team Structures
  Scale offshore teams flexibly to meet seasonal demand without compromising quality.
• Compliance & Data Security
  Built-in controls to ensure confidentiality, independence, and secure documentation.
• Continuous Upskilling
  Ongoing professional development in auditing standards, tools, and methodologies.

👉 Discover how GroWize can empower your audit practice: www.growize.co.uk

This article draws on findings from the report:

Duncan, K., & Hasso, T. (2024). Offshoring of Audit Work in Australia: Insights from Survey and Interviews. Bond University.

The accounting profession in the United States is at a critical crossroads, facing an acute staffing shortage that threatens firms’ ability to meet growing client demands.

In response, many CPA firms are reimagining their audit workforce strategies – embracing hybrid teams that integrate onshore and offshore talent to enhance efficiency, agility, and long-term growth in Audit.

The New Niches in Audit Talent — and Why They Are Scarce

The audit profession is evolving and so are the skills firms urgently need. Today’s audits are no longer just about ticking boxes and verifying numbers. Firms now seek talent with specialized skill sets that go beyond traditional audit execution:

• Data Analytics and Audit Tech Proficiency:
  With the rise of AI-based audit tools and advanced data testing methods, firms need auditors who can interpret analytics outputs, spot anomalies, and understand how to audit complex datasets.
• Industry-Specific Expertise:
  Sectors like media, technology, healthcare, financial services, and ESG-driven businesses require auditors who understand niche industry regulations, reporting frameworks, and risk landscapes.
• ESG and Sustainability Reporting Knowledge:
  As ESG disclosures become mainstream, auditors with the ability to assess environmental, social, and governance reporting are in high demand.
• Cybersecurity and IT Audit Skills:
  With increasing digital risks, firms need auditors who can assess IT general controls, cyber risks, and system security audits effectively.
• Strong Regulatory Understanding:
  Knowledge of evolving PCAOB standards, SOX compliance, and international audit frameworks (IFRS, ISAs) is critical, especially for firms serving multinational clients.

The Staffing Conundrum

• Between 2019 and 2021, more than 300,000 accountants and auditors left their jobs — a staggering 17% decline in the workforce (Bureau of Labor Statistics, 2024).
• Accounting bachelor’s degrees have dropped by 7.8% from 2021 to 2022 (AICPA Trends Report, 2024).
• Top reasons include perceptions of stagnant wages, increasing workloads, and a generational shift toward tech-driven careers.

The PCAOB has also raised concerns over audit quality risks due to “compressed staffing models” at firms, especially among mid-sized CPA practices.

Strategic Shifts by Big Four and Leading Firms

Top firms are setting the playbook for hybrid workforce adoption:

• Offshore Centers Expansion:
  • Deloitte, PwC, EY, and KPMG have expanded delivery centers aggressively across Indian cities like Ahmedabad, Hyderabad, Bengaluru, Gurugram, and Pune.
  • Mid-sized and Top 50 U.S. firms are also setting up captive offshore offices or partnering with offshore talent platforms.
• AI and Automation Investments:
  • Firms are investing in AI-based audit tools, automating routine testing, and freeing up human auditors for high-value judgment work.
• Reskilling Initiatives:
  • Both onshore and offshore teams are being trained on U.S. GAAP, PCAOB standards, data analytics, and ESG reporting to address future client needs.
• Tighter Compliance Focus:
  • With hybrid models, firms are strengthening cybersecurity, data protection, and rigorous engagement oversight to meet PCAOB and SEC requirements.

According to a 2024 Journal of Accountancy survey, 25% of U.S. CPA firms already offshore some services, and another 12% plan to start in the next 12 months.

Challenges to Manage

While promising, hybrid models require thoughtful management:

• Quality Control:
  Strong supervision and standardized workpapers are essential.
• Regulatory Compliance:
  Offshore teams must be trained rigorously on U.S. independence, confidentiality, and documentation rules.
• Cultural and Communication Barriers:
  Cross-cultural training and “follow-the-sun” collaboration models can help bridge gaps.
• Minor nuances that challenge audit team every step of the audit process:
  From subtle documentation gaps to complex client communications, these small details can significantly impact audit quality and timelines.

Looking ahead

Hybrid teams are not just a staffing solution – they are becoming a strategic differentiator.
By smartly blending onshore expertise with offshore strength, CPA firms can future-proof themselves, improve client satisfaction, and maintain audit quality – even in an era of intense talent scarcity.

Firms that invest now in building strong hybrid teams will be better positioned to lead in the new era of accounting and assurance services.

How GroWize is Bridging the Talent Gap

GroWize we are highly specialized on audit support services

At GroWize, we understand that today’s audit firms need more than just additional resources -they need capability solutions that align with their quality standards, regulatory expectations, and future growth plans.

Our Capability Solutions Model is specifically designed to help CPA firms build high-performing hybrid teams, offering:

• Pre-vetted Audit Professionals: Access to a curated pool of qualified accountants trained in international audit practices and have transferrable skills.
• Customizable Team Structures: Flexibility to scale offshore teams based on seasonal demands without compromising quality.
• Compliance and Data Security Focus: Stringent protocols ensuring confidentiality, independence, and documentation compliance.
• Continuous Upskilling: Regular training and development programs to keep offshore teams updated with evolving industry trends, auditing methodologies, emerging reporting standards and technologies.

By partnering with GroWize, firms can future-proof their audit workforce, enhance audit quality, and reclaim valuable time to focus on what truly matters – serving clients and driving firm growth.

 

The accountancy profession is evolving rapidly—and mid-tier firms are right at the heart of the transformation. Amid shifting client expectations, advancing technology, and increased regulatory complexity, one issue continues to dominate boardroom conversations: Talent.

Attracting and retaining qualified staff has become the number one challenge for mid-tier firms. According to the ICAEW’s 2024 “Evolution of Mid-Tier Accountancy Firms” report, 70% of respondents named talent issues as their top concern, with the shortage of qualified professionals standing out as particularly acute.

So, how are firms responding?

Offshoring: A Strategic Response to the Talent Challenge

Faced with a fiercely competitive job market and evolving client needs, many mid-tier firms are strategically leveraging offshoring and outsourcing to build capacity, improve efficiency, and stay competitive.

The ICAEW report found that 86% of firms using offshoring increased their offshore chargeable hours over the past three years, and 71% anticipate further increases by 2027.

These initiatives are most commonly applied to core service lines like accounting, audit, tax, and payroll — areas where workflow can be streamlined and standardized without sacrificing quality.  Yes, it includes auditing which is believed to be more client-facing and complex work that is harder to deliver through offshore teams.  The ICAEW report 49% of the respondents who offered audit services were already offshoring some of their audit work, and a further 11% plan to offshore audit functions within the next three years.

Balancing Efficiency with the Personal Touch

Offshoring isn’t without its tensions. Some firms noted the importance of “maintaining a personal service” for clients, and ensuring offshore teams are seamlessly integrated into their service model is critical.

The firms making this work are those who:

• Have robust quality control frameworks
• Invest in training and communication tools for distributed teams
• View offshore partners as an extension of their core business—not a separate entity

It’s about building blended teams, not creating silos.

Looking Ahead: Strategic Capacity Building

Offshoring is no longer a stopgap solution. It’s becoming an integral part of how mid-tier firms build capacity and resilience. Whether it’s supporting rapid growth, navigating succession planning, or staying agile in the face of client demand, the model is evolving from tactical to strategic.

As one ICAEW survey respondent put it:

“There is an opportunity to invest in RPA and AI to improve business efficiency and free up staff resources to offer client-facing services.”

Offshoring, paired with technology and smart people strategies, allows mid-tier and small firms to not only survive—but thrive—in a time of change.

It isn’t only about offloading — it’s about unlocking. Unlocking capacity, growth and the full potential of their people and services.

Is your firm exploring offshoring to combat talent shortages? I’d love to hear your experiences in the comments.

Who we are

Growize are your strategic offshore growth partner. We help CPA firms:

• Build dedicated offshore audit teams trained in IFRS, US GAAP, and PCAOB/ISAs
• Tap into onshore support options to cover urgent shortfalls
• Set up fully managed captive offices in India for long-term control
• Deliver practical audit training that bridges knowledge gaps and builds confidence

Discover how this works for you and help you thrive: www.growize.co.uk

Source: All statistics and insights are drawn from the ICAEW’s 2024 research report “Evolution of mid-tier accountancy firms”.

Introduction

Audit firms worldwide are increasingly leveraging offshoring to address talent shortages, cost pressures, and operational scalability. What started as a necessity is now a strategic imperative for firms seeking to sustain audit quality amid workforce constraints.

Global Adoption Trends

• Big Four Firms:
  • Offshore audit hours doubled from 4% to 9% between 2013–2018.
  • By 2023, some U.S. firms offshored 6%–20% of audit hours.
• Mid-tier and Small Firms:
  • 49% of UK mid-tier audit firms already offshore some audit work.
  • 25% of U.S. accounting firms offshore; another 12% plan to start.
• Projected Growth:
  • UK firms predict an additional 71% increase in offshored audit hours over the next three years.

Key Drivers Behind Audit Offshoring

1. Severe Talent Shortages

• Global Talent Gap:
  • Accounting enrollments fell sharply:
    • UK: -56%, US: -61%, Canada: -54%, Australia: -51% (2012–2023).
• Hiring Crisis:
  • 90% of firms globally report hiring and retention challenges.

2. Cost Pressures

• Cost could be a driving factor but not at the cost of quality so firms are preferring quality providers and whilst remaining cost-effective.
• Offshore teams deliver operational efficiency without sacrificing audit quality.

3. Capacity and Scalability Needs

• Offshore models provide firms with on-demand audit capacity, especially critical during peak seasons.

Offshore Audit Work: Nature and Scope

• Primarily low-judgment areas (testing, documentation) but expanding into analytical and areas which require professional judgement i.e. impairment assessment, going concern, audits of financial instruments and IT audit areas.
• Offshore teams are increasingly integrated as full extensions of the core audit engagement teams. All leading firms have been leveraging this model for years and mid-tier and small firms are increasingly interested in doing this but with the right partners who are specialized in audit.

Regulatory Perspectives

• FRC (UK), PCAOB (US), AUASB (Australia):
  • Offshoring accepted, but firms must maintain oversight, audit documentation standards, and data security.
  • PCAOB warns that offshoring some basic tasks may impact junior auditors’ development. However, offshoring is not just for basic tasks, qualified offshore professional can handle even highly complex tasks and project management.
• No evidence that offshoring reduces audit quality, provided supervision is robust.

Future Outlook (2025 and Beyond)

• Offshoring to double or triple in some mid-tier and smaller firms by 2027.
• Firms without offshoring are at risk of losing competitive edge due to talent and cost pressures.
• Audit globalization is underway: cross-border teams are the new normal for sustainable audit delivery.

Final Insight

Offshoring is no longer just an operational workaround.
It’s a strategic enabler for audit firms seeking to survive and thrive in a changing market.
However, success depends on specialization, integration, and rigorous oversight — not merely shifting tasks offshore.

Offshoring is here to stay – and firms that leverage it smartly will lead the future of auditing.