Financial Auditing Professional Services Market size is anticipated to churn out lucrative gains over the span of 2021-2027 due to the imposition of stringent regulations pertaining to the disclosure and reporting of financial details of the business. A surge in the advent of various businesses, public listing of different enterprises, and internal audits being a common practice would further boost the market demand.
Furthermore, escalation in the incidences of financial frauds, misreporting, and manipulation of crucial financial figures in the business is likely to complement the financial auditing professional services market progression through the coming years.
Based on the type, internal audits are slated to gain significance during the analysis period majorly owing to the growing focus of various organizations on effectively managing financial risks as well as enhancing the overall performance. Besides, the role of internal audit is to offer independent assurance that the organization’s governance and internal control processes are functioning efficiently.
In terms of the service, financial statement audit segment would accrue considerable gains over the forecast period. This growth is being propelled by the service’s ability to offer a true and fair view of its financial performance. The objective of financial statement audit is to add credibility to the testified financial position and performance of a business and an enterprise. In addition, these services also help companies in preventing misreporting and managing risks, thus reducing vulnerability to fraud.
Financial auditing professional services applications are growing in the BSFI sector driven by the rising incidences of banking frauds worldwide. As per the RBI estimates, the total number of fraud cases registered by financial and banks institutions across the Indian continent rose by 28% by volume and 159% by value over 2019-2020. BFSI organizations have thus been incorporating financial auditing professional services to reduce the vulnerability of these institutions for banking frauds. Moreover, BSFI enterprises are outsourcing their financial auditing requirements to 3rd party service providers to emphasize on their core business competencies.
Geographically, Asia Pacific financial auditing professional services market would grow considerably through 2027 fueled by the expanding industrialization and urbanization. Various businesses are coming up in the region exposing these enterprises to newer risks and vulnerabilities, adding to the demand for financial auditing professional services. Besides, rising incidences of frauds in the hospitality sector across various emerging economies would impel the product demand further. In 2019, China’s National Healthcare Security Administration had revealed that 8 hospitals in the country were suspected of being involved in medical insurance fraud. Such instances are expected to propel the regional market demand over the stipulated time frame.
The global financial auditing professional services market is highly consolidated and boasts the presence of various players including Ernst & Young (EY), Deloitte, RSM International Association, PricewaterhouseCoopers, Moore Stephens International Limited (Moore Global), KPMG Inc., and others. These market vendors have been striving to bring forth novel products in the space and gain a competitive edge in the industry while being engaged in mergers, acquisitions, partnerships, and more.
The novel coronavirus pandemic outbreak has had a severe impact on the global market. During the COVID-19 lockdown phase across various economies, vivid companies shifted to online platforms for operation, thus catalyzing the vulnerability for online financial frauds. Owing to the rise in these frauds, the demand for financial auditing professional services is estimated to grow profusely over the foreseeable period.