Audit's Silver Lining

As I put pen to paper on my latest article, it's hard not to think about our current situation, another lockdown. Instead of writing about online interviews or how to work full time and homeschool (it's been done to death), I've decided to write about an industry that has been heavily affected by covid and my observation on how it has changed for the better, external Audit.

My first placement in the accounting world was an auditor. Well, to be precise, a returning auditor. They had been out of audit for some time and decided to get back into the practice. It was an easy placement, and my (more experienced) colleague was surprised and told me not to expect that every day.

Two years later, and countless calls to auditors who want out of audit, I now know what they meant. The common complaints we have are the long hours, the monotonous work or the lack of adding value are some of the many reasons most people flee external audit for commercial roles. Convincing somebody to stay can be challenging, but to come back, well, that didn’t happen often at all.

Then the world changed, and so did the demand for auditors. No longer could we rely on a steady stream of overseas qualified auditors relocating to Aoteroa to help fill the audit void. Our borders were closed. Everybody clung to their jobs for dear life for a period, but confidence in the economy grew. It looked as though New Zealand had done the right thing, and life returned to normal. Auditors moved to Commercial, and some sidestepped into Corporate Finance and other streams. Some even went to London. But our borders remain closed.

Secondments were on hold. Larger businesses tried to use their overseas resources only to find that those resources went into lockdowns of their own. Clearly, something had to change locally.

So what's changed, and why is it a good thing?

Over the last six months, firms have changed their criteria, work expectations, and packages to entice people into external audit. Previously overseas experience would usually only be helpful if it came from certain countries and the Big Four or Mid Tiers. This has changed. We have working examples of people who were often overlooked now securing work.

I once asked an audit partner if he would consider a part-time auditor, and I was literally laughed at. We have since placed a part-time audit manager that actually does part-time hours which has confirmed this is very much possible.

Auditors who left audit for a couple of years would struggle to get back due to the changes in the industry. This has also changed with firms now prepared to overlook this and upskill these staff. Our best example is placing a candidate who has been out of audit since 2012, they are now working back in the industry they love and the client has secured a talented addition to the team.

Remuneration/packages and titles are all up for negotiation. Even with strict salary bandings, firms are finding creative ways to secure top talent. This may be with a signing-on bonus, a title increase so remuneration can be increased or just better available perks. Three or six-month performance reviews in writing from the start date are an increasingly popular tool which gives commitment to a potential salary review and promotion.

Finally some of the responsibilities are changing to try and make the job feel more rewarding. This could include more people management, aligning a portfolio to meet a particular interest or providing more exposure to a risk.

Just like with Covid, who knows what will happen when the borders do eventually open. Will audit slip back into its old ways? Will firms continue to consider new ways of securing top talent and considering hiring talent they would have previously dismissed? One thing is for sure, there has never been a better time to be an auditor/ex auditor when it comes to the job market.

If you are an ex auditor who has considered coming back to audit, or a current auditor who would like to take advantage of a highly competitive market, I would be keen to chat.

Ben Holloway | E: [email protected] | P: 09 972 9988