Auditing a Strong Revenue Source for Firms | AccountingWEB

Auditing a Strong Revenue Source for Firms

Auditing has gotten a bad "rep" over the past few years--and especially during the past year--thanks to investigative work done by the Securities and Exchange Commission and the fact that CPAs and accounting professionals have reportedly been seeking more lucrative, less risky alternatives to audit work.

However, some experts in the nation's top firms have gone public with their opinions that their assurance services are indeed a money-maker for their firm and that any integrity lost as a result of alledgedly poor auditing practices is not really their fault.

In the world of the Chief Financial Officer, however, opinions vary widely. A few former accounting firm employees who made a successful switch to industry, liken the audit business to "commodities" in which companies are extremely price conscious when it comes to engaging a firm to perform an audit. As a result, accounting firms may find themselves bidding lower on an audit in order to secure business from the company in other ways, such as consulting.

One CFO even compared this bidding practice to a K-Mart "Blue Light Special."

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.