Audit methods of the past can’t keep up with today ’s demands

This article is a highlight of our 2021 year-end tax briefing; our full briefing includes additional information on topics such as delaying / reducing income and gains, need rates, maximizing deductions, energy credits, corporate AMT, depreciation and expensing, research and development expenses, international tax, and other year-end tax planning strategies.

Even before COVID-19, the accounting profession was experiencing profound change. The pandemic accelerated the pace of digital transformation and changed the way firms and clients work together. Firms face many challenges, from new compliance pressures to greater competition for talent. The pace of legislative change remains rapid, and it seems like the concept of a “normal tax season” may no longer exist.

Firms are subjected to many market pressures. They face difficulty in the talent marketplace and need to ensure auditors can perform fulfilling, enjoyable work. At the same time, clients demand lower fees and want to receive more value. The volume of client transactions is skyrocketing, causing audit sample sizes to expand. The audit methods of the past can’t keep up with today’s demands.