Auditing is defined as the evaluations of the reliability and credibility of financial and non-financial information as well as “the systems and processes responsible for recording and summarizing that information”.
The global auditing services market was valued at $210 billion in 2017. North America was the largest geographic region accounting for $77.1 billion or 36.7% of the global market. The USA was the largest country accounting for $61.7 billion or 29.4% of the global auditing services market.
Audit firms are offering integrated, strategic and expanded audit reports to address issues and opportunities affecting the long term value of the business. Companies in the auditing services market have increased their operating metrics that relate to volumes, capacity, growth and other performance indicators that are interest to the market. The expanded audit report helps the investors take capital allocation decisions effectively by refocusing organization’s business model and strategic priorities.
The companies covered are Ernst & Young, Protiviti, Deloitte, PwC, and KPMG.
The countries covered are USA, China, Germany, Brazil, Japan, UK, Spain, Russia, France, Australia, Italy, India and rest of the world.
The auditing services market is segmented into External Audit Services; Internal Audit Services; Forensic Audit Services; Public Sector Audit Services; Tax Audit Services; Information System Audit Services; Environmental & Social Audit Services; Compliance Audit Services; and Process Audit Services.
External Audit Services includes external audit services, which is also known as financial audit and statutory audit, involves the examination of the truth and fairness of the financial statements of an entity by an external auditor who is independent of the organization in accordance with a reporting framework such as the IFRS.
Internal Audit Services includes Internal audit, which is also referred as operational audit, is a voluntary appraisal activity undertaken by an organization to provide assurance over the effectiveness of internal controls, risk management and governance to facilitate the achievement of organizational objectives.
Forensic Audit Services includes forensic audit which involves the use of auditing and investigative skills to situations that may involve legal implications.
Public Sector Audit Services includes state owned companies and institutions audits which are required by law in several jurisdictions to have their affairs examined by a public sector auditor.
Tax Audit Services includes tax audits which are conducted to assess the accuracy of the tax returns filed by a company and are therefore used to determine the amount of any over or under assessment of tax liability towards the tax authorities.
Information System Audit Services includes information system audit which involves the assessment of the controls relevant to the IT infrastructure within an organization. Information system audits may be performed as part of the internal control assessment during internal or external audit.
Environmental & Social Audit Services includes environmental & social audits which involve the assessment of environmental and social footprints that an organization leaves as a consequence of its economic activities.
Compliance Audit Services includes companies which are required to conduct specific audit engagements other than the statutory audit to comply with the requirements of particular laws and regulations.
Process Audit Services includes audits which involves the assessment of the efficiency, effectiveness and economy of an organization's use of resources.