Auditing Services Global Market Report 2024

The auditing services market size has grown strongly in recent years. It will grow from $226.82 billion in 2023 to $239.29 billion in 2024 at a compound annual growth rate (CAGR) of 5.5%. The growth observed in the historical period can be attributed to the globalization of businesses, compliance with regulatory requirements, the heightened complexity of financial transactions, a focus on public accountability and investor confidence, and the increasing need for risk management and adherence to corporate governance practices.

The auditing services market size is expected to see steady growth in the next few years. It will grow to $290.79 billion in 2028 at a compound annual growth rate (CAGR) of 5.0%. Projected growth is driven by cybersecurity audits, emphasis on ESG auditing, remote auditing solutions, collaboration with internal teams, and advanced data analytics and AI integration. Key trends include the adoption of regulatory technology (RegTech), integration with blockchain, technological advancements, digital transformation in auditing, and a heightened focus on data privacy.

The anticipated rise in corporate spending on financial auditing and recording is poised to drive the growth of the auditing services market in the foreseeable future. This trend is characterized by an increased allocation of financial resources by corporations towards auditing and recording activities, driven by a heightened focus on financial transparency, regulatory compliance, and robust corporate governance practices. Auditing services play a crucial role in assisting companies in identifying errors and fraud within financial statements, ensuring compliance with applicable laws and regulations, enhancing internal controls, and mitigating risks. As an illustration, in November 2022, Harvard Law School, a US-based private research university, reported that the total auditing fees for companies reporting in a fiscal year reached $18.9 billion in 2021, reflecting a 3.3% increase from 2020. Notably, the average amount paid by Securities and Exchange Commission (SEC) registrants for audit services and average audit-related fees rose to $2.17 million and $0.23 million, respectively. Furthermore, average audit fees experienced an uptick, reaching $1.9 million for US companies and $2.9 million for foreign companies in 2021. This data underscores the growing significance of corporate expenditure on financial auditing and recording, thereby propelling the expansion of the auditing services market.

The escalating cybersecurity threats are poised to fuel the expansion of the auditing services market in the coming years. Cybersecurity threats encompass malicious activities that exploit vulnerabilities in computer systems, networks, and digital infrastructure, posing a growing risk to businesses of all sizes. Recognizing the increasing importance of cybersecurity in the auditing services domain, auditors are integrating cybersecurity considerations into their audits to help businesses identify and mitigate cyber risks effectively. As of January 2023, a report from CompTIA, a US-based non-profit trade association, highlights the alarming surge in cybersecurity threats, with 2,200 cyber-attacks occurring daily and an average of one cyber-attack happening every 39 seconds. In the US, the cost of a data breach averages $9.44 million, and cybercrime is anticipated to incur a total cost of $8 trillion by 2023. Notably, 92% of malware is delivered via email, and at any given time, 4.1 million websites are infected with malware. Consequently, the mounting cybersecurity threats are a key driver propelling the growth of the auditing services market.

The integration of AI-based auditing solutions is emerging as a prominent trend gaining traction in the auditing services market. Notably, major players within the market are incorporating artificial intelligence and other digital technologies into their auditing services to bolster their market presence. A case in point is Phoenix Technocyber, an India-based company specializing in technology solutions and auditing services, which, in March 2023, introduced the TechOwl GRC GAP Assessment Tool. This innovative IT auditing tool is designed to streamline the auditing process, reduce manual effort, and enhance the accuracy and efficiency of IT audits through the utilization of artificial intelligence and automation. Leveraging advanced AI algorithms and machine learning techniques, the tool analyzes substantial volumes of IT data, identifies potential risks and vulnerabilities, and provides actionable insights to enhance IT security and compliance. This strategic adoption of AI-based auditing solutions underscores the commitment of major companies in the auditing services market to leverage cutting-edge technologies for improved efficiency and effectiveness.

Prominent companies within the auditing services market are actively engaging in strategic collaborations to drive technological advancements and maintain their competitive positions. These strategic collaborations involve partnership agreements or alliances between entities, such as companies or organizations, aimed at achieving mutually beneficial objectives. A notable example is the collaboration between KPMG Ltd., a Netherlands-based multinational professional services network, and MindBridge Analytics Inc., a Canada-based software company. In May 2023, they joined forces to integrate advanced AI technology into auditing, with the goal of enhancing risk identification and insights provision. The collaboration will utilize MindBridge's technology within KPMG's smart audit platform, KPMG Clara, to automate aspects of the auditing function. Furthermore, this alliance is expected to streamline the identification of unexpected or high-risk transactions, fostering efficiency, and contributing to the training and upskilling of the next generation of auditors in innovation and data analytics. This strategic approach reflects the commitment of major companies in the auditing services market to harness collaborative efforts for technological innovation and advancement.

In March 2023, Cohen & Company, a prominent US-based provider of assurance, tax, and advisory services, successfully acquired the Investment Management Group of BBD LLP for an undisclosed amount. This strategic acquisition is geared towards enhancing Cohen & Company's market presence as a leading provider of assurance and tax services within the investment industry. The move is anticipated to bring about increased operational efficiencies, access to a wider pool of talent, an expanded array of services, and the integration of advanced technology throughout the organization. BBD LLP, the acquired entity, is a US-based firm specializing in certified public accountants, with a focus on providing audit and tax services exclusively for not-for-profit organizations.

Major companies operating in the auditing services market report are Deloitte, PricewaterhouseCoopers LLP, Ernst & Young Global Limited, KPMG International Cooperative, BDO International Ltd., Baker Tilly US LLP, Nexia International Limited, CliftonLarsonAllen LLP, Moore Global Network Limited, RSM US LLP, Mazars Group, Grant Thornton LLP, FORVIS LLP, Crowe LLP, Moss Adams LLP, Plante Moran PLLC, Eide Bailly LLP, Sikich LLP, Marcum LLP, Armanino LLP, Wipfli LLP, EisnerAmper LLP, Rehmann LLC, Dixon Hughes Goodman LLP, UHY Advisors Inc., Schellman & Company LLC, Sensiba San Filippo LLP, Mayer Hoffman McCann P.C., Squar Milner LLP, Friedman LLP.

North America was the largest region in the global auditing services market size in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the auditing services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the auditing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The principal categories of auditing services encompass internal audit, external audit, and various other specialized types. Internal audit entails an unbiased evaluation conducted by an internal audit function within an organization, assessing its operations, processes, and controls. Diverse services fall within this scope, including operational audits, financial audits, advisory and consulting services, investigative audits, among others. These services find application across multiple sectors, serving end users such as banking, financial services, and insurance (BFSI), government entities, manufacturing firms, healthcare institutions, retail and consumer markets, information technology (IT) enterprises, as well as communication sectors.

The auditing services market research report is one of a series of new reports that provides auditing services market statistics, including the auditing services industry's global market size, regional shares, competitors with an auditing services market share, detailed auditing services market segments, market trends and opportunities, and any further data you may need to thrive in the auditing services industry. This auditing services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The auditing services market includes revenues earned by entities by providing compliance auditing service, IT auditing, environmental auditing, and tax auditing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.