Auditing Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Auditing Services Category Overview

The auditing services category is anticipated to grow at a CAGR of 4.4% from 2023 to 2030 with North America accounting for 36.7% of the global share due to numerous multinational corporations (MNCs), and voluntary auditing and reporting practices by companies. The growth of this category is driven as a result of stricter government laws and the growing pressure on business leaders to enhance corporate operations, boost productivity and quality as well as cut costs. One of the key factors fueling the expansion of the services is the demand for effective corporate procedures.

In 2022, the category size was estimated to be valued at USD 218.7 billion. An important development in financial auditing is the emergence of strategic partnerships. Major market players are concentrating their efforts on collaborations that will enhance their future product and service portfolios. For instance, in April 2023, KPMG and MindBridge established a strategic partnership to support the global digital audits conducted by KPMG using cutting-edge artificial intelligence (AI). KPMG's smart audit platform, KPMG Clara, will now be able to better identify unexpected or high-risk transactions and improve the quality of audits by leveraging the power of AI.

The auditing category can be segmented into internal and external audits that further bifurcate on the basis of services such as operational, financial, advisory and consulting, IT, investigation, and others. Technology in auditing continues to evolve as the explosion in data has launched the fourth industrial revolution that transformed businesses through cyber-physical systems, increasing complexity and creating demands on audit professionals. Firms are focusing on integrating digital technology and using cloud-based infrastructure that enables several technology trends to develop. For instance, EY has three foundations of their digital audit: EY Canvas, their online audit platform; EY Atlas, a cloud-based knowledge platform that delivers the latest accounting and auditing content; and EY Helix, a data analytics platform.

Auditing is considered an expensive activity, which requires implementing various measures like subcontracting certain areas, engaging external audit firms, and continuous monitoring. Factors such as the size and complexity, scope, expertise, time, and resources required to conduct the examination add up to the cost.The total tax audit representation cost could be anywhere between USD 2,500 and USD 10,000 per tax year. Audit representation fees are charged either as an hourly rate or a flat fee. The primary cost component covers the services provided by the auditors including planning, fieldwork, report preparation, labor, salaries, and travel expenses. Other overhead costs consist of partners, the use of technological tools such as machine learning, artificial intelligence, robotics, visualizations, and software like CaseWareIDEA, Audit board, SAP audit management, etc. Organizations follow a systematic approach while sourcing auditing services. It includes determining specific requirements, identifying potential auditors, sending requests for proposals (RFP) to multiple auditing firms to solicit their proposals, evaluating, and selecting firm, and negotiations to finalize engagement terms. 

This category is led by companies such as Deloitte, EY, PwC, and KPMG, also known as the "Big Four" auditors. Other players include BDO, Grant Thornton, Nexia International, RSM, Baker Tilly, etc., making it highly fragmented, with a large number of players vying for a share of the market, which further complicates the industry landscape.

The North American region is likely to witness substantial growth owing to the increasing adoption of advanced auditing technologies, along with the rise in the number of corporate frauds. The Asia-Pacific region is anticipated to dominate, with China leading the market share due to the growing adoption of digital auditing solutions and the increasing popularity of cloud-based accounting services. In India, the recent government initiatives and the listing of startups on the stock exchange created huge demand for the services. 

Auditing Services Procurement Intelligence Report Scope