Our profession as accountants has changed considerably due to increased regulatory pressure and socially disruptive incidents. Regarding mandatory audits, the gap between the big firms and the rest increased due to ‘economies of scale’. Accounting firms and experienced accountants left this part of the audit business. Now fewer licensed parties must do the job. Audit firms struggle to find auditors, and clients experience unwanted changes in audit teams, leading to inefficient and costly audits. We think the solutions we offer can result in an alternative if we join as IR Global partners.
Economic development and globalization ensure the growth of our business Demand for mandatory audits, also across the border, is growing, if not exploding. But in many countries the availability of auditors is decreasing. The role of audit in society and the content of the job led to a less attractive career perspective for younger generations
Large audit firms cannot handle all demand for audit services because their auditors leave for other business lines or professions. As a result, more and more internationally oriented clients are hiring smaller audit firms. At TIC Assurance a Dutch audit only firm and IR Global partner, we saw substantial economic growth, even during the pandemic. Brexit accelerated this development. Where internationally operating companies within the European Union could use the exemption for mandatory audit for subsidiaries based on a liability statement (so called 403 statement), this option is lost for the UK now.
But how do we meet the opportunities regarding audit and staff quality?
Audit quality
Using the most advanced audit techniques, modern audit software, process-oriented analysis of large data files (data mining process mining), and robotized help to extract and handle data from MS Word and pdf files, our tooling is state of the art.
An item that is not always linked to technology but has a substantial impact on our business is the accelerated search for solutions for remote working caused by the COVID crisis. As a result, team members can do significant parts of the audit job worldwide.
But in the end the quality of audit staff is most important for audit quality. Ability, training, and availability are core to reaching a high-quality audit staff. However, we think the challenge in what we expect from them, and independent decision making is also essential. And not to forget, fun at work!
In big audit firms, the fear of claims has led to a check the box principle, which does not serve the core of the audit. Highly educated employees spend their days with extensive, often unnecessary substantive testing. Because of that, they leave the audit profession.
We think that if you dare to choose a straightforward audit approach and grasp the real risks, you can go through the process more efficiently. As a result, the craft returns to the hands of professionals, leading to professional satisfaction Besides this, the understanding and appreciation of the customer increases. And remote working adds an extra dimension because teams worldwide can now participate in a more effective audit approach.
Staff availability
In most countries, auditors are very rare and hard to get. But remote working can bring in qualified auditors from countries with less shortage. To get access to skill ed staff, TIC Assurance uses the services of Finance Teams It is a startup from WRKD a company that has supported auditing and accounting firms in the Netherlands, Belgium, and Germany for many years.
The firm has access to finance professionals from Bosnia and Herzegovina. With their knowledge and experience, they contribute to the overall audit processes. For them, it is an excellent opportunity to work for a Dutch company, within international teams, and for globally recognized companies.
The idea is that Finance Teams also stimulate interaction within the international team in their homeland for example by intervision. Members are selected based on education and a passion for continuous learning.
How Nadja from Sarajevo experiences TIC Assurance in the Netherlands
“Via Finance Teams I got the opportunity to be a part of the audit team at TIC Assurance and to be involved in the audit of clients who operate in the Dutch market. This opportunity has enabled me to be a part of an international audit team and contribute with my experience gained from working in the audit industry in Bosnia and Herzegovina. Aside from my contribution, I can learn and grow every day.
International teams offer diversity. This diversity among team members includes getting to know other cultures and their approach es to audit whether it relates to planning and risk assessment, conducting analytical reviews, or bringing innovation to substantive testing This diversity is what makes an audit team and audit company strong. Diversity enables me to explore new ideas and use new or different audit tools, and it allows me to be creative and innovative in viewpoints
Also, it allows me to work with globally recognized companies and organizations with complex and structured internal processes and control environments While at the same time the pool of in-house knowledge allows me to maintain work life balance and enjoy getting to know our clients and the industries in which they operate. I experience more joy in my profession and have fun with my colleagues.
We think that such an environment where sharing ideas, knowledge and experience is encouraged gives TIC Assurance a competitive advantage over others.
Towards global cooperation in IR Global
The principle of IR Global’s network is bringing smaller audit firms together worldwide in a common brand. As a member we do not share such a familiar brand name. But auditing with international teams on local and international clients with a clear view on audit with dedicated staff, not bounded completely, and willing to learn from another, can give us a position in the competition to rank the well-known names!
