A recent report highlights growing tension between generations at major US accounting firms, raising concerns about the impact on training and audit quality. The report, by the Public Company Accounting Oversight Board, points to challenges in the new remote and hybrid work environment and the potential loss of the traditional apprenticeship model. Senior figures express worry that managers are performing tasks typically handled by junior staff, leading to potential lapses in accuracy. The PCAOB is investigating the surge in flawed audits following the pandemic, emphasizing the critical role culture plays in delivering quality audits.
There was an undercurrent of intergenerational tension in an important report on the workplace culture of the US’s largest audit firms last month. Based on interviews with executives and partners at Deloitte, EY, PwC, KPMG, Grant Thornton and BDO, it highlighted grumbles that firms risked losing the old “apprenticeship model” in which entry-level employees learn from their elders.
Intriguingly, it also noted that audit firms with the highest deficiency rates in recent years seemed to have the highest percentage of senior managers and partners who were hired from other firms rather than having started their career in house. This suggests firms that can hold on to employees for the long term have an advantage in building a strong culture and keeping standards high.
Intergenerational Tension Audit Quality Remote Work Accounting Firms Financial System
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