Financial Auditing Professional Services Market size is projected to experience a healthy growth during 2023 to 2032, given the growing imposition of stringent regulations pertaining to the disclosure and reporting of financial details of the business. Prolific growth in launch of new businesses, public listing of different enterprises, and internal audits being a common practice would further boost the market demand.
Furthermore, alarming concerns around growing financial frauds, misreporting, and manipulation of crucial financial figures in the business is likely to complement the financial auditing professional services market progression by 2032 end. As per a report by Federal Trade Commission, American consumers lost over USD 5.8 billion to fraud in 2021, depicting a 70% hike from that in 2020.
It is worth noting that the Russia-Ukraine war has had severe implications on the auditing management. Not only that, but the invasion also led to economic sanctions on multiple nations, supply chain disruptions, and surge in commodity prices, affecting the market to a much larger extent.
Based on the type, The financial auditing professional services market from internal audits segment is slated to gain remarkable momentum during the forecast timeline, 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 show tremendous growth from 2023 to 2032, 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.
On the basis of applications, the financial auditing professional services market demand for financial auditing professional services is being largely felt across the BFSI sector driven by the rising incidences of banking frauds worldwide. According to credible sources, over USD 730 million were stolen through bank fraud and scams in the United Kingdom during the first six months of 2022. Meanwhile, the unauthorized fraud losses across remote banking and payment cards accounted for approximately USD 430 million in 2022. BFSI organizations have thus been incorporating financial auditing professional services to reduce the vulnerability of these institutions for banking frauds. Moreover, these enterprises are outsourcing their financial auditing requirements to 3rd party service providers to emphasize on their core business competencies.
From the regional purview, Europe financial auditing professional services market increase exponentially through 2032, fueled by the expanding industrialization and urbanization. Various businesses are coming up in the region exposing these enterprises to newer risks and vulnerabilities, contributing to the growing demand for financial auditing professional services. Besides, rising incidences of frauds in the banking sector across various developed economies would impel the product demand further. As per UK Finance estimates, the banks recorded more than USD 730 million of unauthorized fraudulent transactions in the first half of 2021. 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.
Citing an instance, in 2022, PlainID, an Israel-based authorization firm that delivers authorization, opened partnership with PwC to transform its financial services in the coming years.