Bound Volume Number
Volume IX
Degree Type
Honors Capstone Project
Date of Submission
Spring 5-2016
Capstone Advisor
Randy Elder
Honors Reader
Susan Albring
Capstone Major
Accounting
Capstone College
Management
Audio/Visual Component
no
Keywords
offshoring, audit services and audit staff
Capstone Prize Winner
no
Won Capstone Funding
no
Honors Categories
Professional
Subject Categories
International Business
Abstract
Intensifying audit competition, increasing audit quality standards, and rising demand for audit services have prompted accounting firms across the nation to adopt new methods to meet client and industry demands while not overextending audit staff or raising audit prices. The use of offshoring to utilize a global workplace has allowed firms to maintain their competitiveness and expand to new markets to creatively respond to the industry demand. While offshoring is not something new on the global scale, the auditing practice was a late arrival to this practice, especially when compared to manufacturing industries or even the tax practice within the accounting industry. This study examines the effect of offshoring on the delivery of audit services and audit staff involved in providing audit services.
Primary and secondary research was conducted to gain an in-depth look at these trends and their impact on the local and global audit work environment. Interviews with industry leaders provided insight into their teams’ offshoring use and the effects it has had on the way they conduct business. Secondary research uncovered larger trends that the accounting industry has undergone or foresees in the near future. The two were joined to explain the common trends, the causes and effects of these trends, and the benefits and drawbacks industry leaders perceive as they increase their use of offshoring. Offshoring reduces audit costs and also increases audit efficiency by allowing use of additional audit staff in other global time zones. However, offshoring alters the type of work done in the United States, and also changes the responsibilities of first-year audit staff.
Recommended Citation
Farnet, Mignon, "Globalization and Offshoring: the Effects of a Globalized Workplace on Auditing Procedures" (2016). Renée Crown University Honors Thesis Projects - All. 974.
https://surface.syr.edu/honors_capstone/974
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
