As a former auditor turned Account Manager at Validis, I’ve seen both sides of the coin. Let’s dive into why I left auditing, the challenges facing the industry, and how technology could be the key to retaining top talent.
The Talent Exodus in Auditing
It’s no secret that the audit industry is facing a talent retention crisis. According to a 2023 study by the AICPA, 75% of public accounting firms cite finding and retaining qualified staff as their top concern. But why are auditors, especially juniors, leaving in droves?
Three Reasons I Hung Up My Auditor Hat
1. Data Dilemmas and Awkward Client Conversations
As a junior auditor, I often found myself in uncomfortable situations with clients, trying to explain what data I needed without fully understanding it myself. It’s like being asked to bake a cake without knowing the ingredients!
2. The “Necessary Evil” Syndrome
Clients often view auditors as a time-sink, pulling them away from running their business. We’d ask questions that could have been answered by properly analyzing GL, AR, or AP reports, but without the right tools, we were stuck playing 20 questions.
3. Missing the Big Picture
I wanted to have meaningful conversations about how companies navigated challenges throughout the year. Instead, I got bogged down in questions about systems, data, and security. Hours were spent painstakingly formatting and manipulating data, followed by even more time ensuring it all balanced. It felt like missing the forest for the trees.
The Junior Auditor’s Dilemma
Being a junior auditor is like being a detective without a magnifying glass.
You need to know what specific data to ask for – like aged debtors to test for understated or overstated accounts, or data to test cut-off or identify fictional invoices. But it’s not just about knowing what to ask for; it’s about how to ask for it. Clients have been through this process many times and will only provide what’s absolutely necessary. You need to be specific and knowledgeable to get the granular data you need.
Adding to the stress is the constant worry about missing fraudulent activity or overlooking misstated data. And let’s not forget the confusion between ‘manual’ and ‘automatic’ journals – a distinction that often left me scratching my head.
How Tech Like Validis is Changing the Game
While auditing isn’t all about data, it’s a crucial foundation. Without clean, easily understood, and analyzable data, performing a high-quality audit becomes nearly impossible.
Enter Validis. Here’s how our technology is addressing these pain points:
1. Data Collection in Minutes
- Eliminates the need for accounting system expertise, collecting 100% of journal transactions in minutes through a streamlined process for all clients and audits.
- Removes the burden and confusion from both auditors and clients, simplifying the entire data request and sharing process.
2. Standardized, Audit-Ready Data
- Delivers one standardized, easy-to-understand output with a user-friendly interface for quick identification of anomalies or high-risk areas.
- Frees up time for value-adding analysis by reducing awkward client conversations and eliminating data manipulation tasks.
As Zhong Ang, Senior Data Analyst at Grant Thornton, puts it:
“Not only is there time saving because formatting is no longer required, but the data coming from the client can be trusted to all be at an exact point in time.”
3. Focus on What Matters
Enables a shift from checklist-driven to risk-based auditing, allowing for more meaningful client conversations about business challenges and strategies.
Makes sampling and planning calls more strategic, focusing on insights rather than data logistics.
As Lori Warden, Assurance Practice Leader at ATA, notes:
“Validis empowered ATA to shift from a checklist-driven approach to a truly risk-based methodology, enabling our auditors to prioritize high-risk areas and deliver more targeted, value-adding audits.”
Keeping Good Talent: Actionable Advice for Audit Firms
1. Eliminate mundane tasks
Invest in technology and processes that automate data collection and standardization. By implementing tools like Validis, firms can free up auditors to focus on critical thinking and analysis. This not only improves efficiency but also increases job satisfaction by allowing auditors to engage in more challenging and rewarding work.
2. Focus on building confidence
Invest in soft skills training from the start, particularly in areas like communication, problem-solving, and client management. This gives junior auditors the confidence to have meaningful conversations and build strong relationships with clients early in their careers. Confident auditors are more likely to stay engaged and see a clear career path in the profession.
3. Involve them in value-add tasks from the start
Implement mentorship programs and processes that allow junior auditors to participate in deeper analysis and insight generation from day one. This approach fast-tracks their learning, closes the experience gap more quickly, and helps them feel they’re making a real impact. When young auditors can see the value they bring to both the firm and clients, they’re more likely to remain committed to their auditing career.
Satpal Nagpal, Audit Practice Leader at GHJ, has seen the impact firsthand:
“We’ve not only gained over 40% in productivity, but Validis have helped us create more rewarding roles for our auditors.”
The Bottom Line
If I’d had access to tools like Validis during my auditing days, who knows? I might still be analyzing numbers and adding value to clients. By embracing technology and focusing on creating meaningful work, audit firms can not only retain top talent but also deliver better results for their clients.
Get in touch if you’d like to chat to me about how technology can be used to create more rewarding roles for your team. And for a quick overview of how Validis can help, check out the video below. Sound on – it’s got a cracking tune!
