Efficiency in audit practice of Ernst & Young (EY)

Abstract

In the world of today’s corporates where regulations are always changing and technology is advancing at a very fast pace the efficiency of the audit processes is essential to keep trust in the financial reports. This report deals with the peculiarities of audit efficiency at Ernst & Young (EY), one of the so-called Big 4 accounting firms, in this context. This study is aimed at revealing the ways EY develops efficiency in combination with the highest standards of quality and compliance, the analysis of the company’s techniques, tools, and tactics in its audit business. Auditors need to pay attention to detail, in order to meet the strict requirements of such regulators as PCAOB, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The complex accountability landscape makes EY as the leading auditing brand to have to maneuver through it to offer assured, consistent, and timely audits. This research aims to scrutinize the start, the development and the end of EY audit process. This research is going to examine the way EY auditors assess the financial statements, showing the possible risks and create audit procedures. It also provides methods of enhancing the productivity and efficiency of audit through the use of data analysis tools and latest technology. EY aspires to adopt state of the art technology that enables the audit process to be automated and removes the need for manual intervention, focusing on the areas of highest risk. Another issue that will be examined in this report is the issue of competence and knowledge of EY’s audit teams. To ensure that its auditors can handle complex audit engagements, EY has invested heavily in auditor recruitment, training, and professional development interventions. Moreover, the paper emphasizes on communication, collaboration, and teamwork when groups develop an innovation and errorless perfection culture among the audit teams and achieve an ideal synchronization among these team members. The purpose of this study is to understand the determinants of audit efficiency and its implications for stakeholders by moderating the audit practices of EY. To further the long enduring conversation on the best practices of auditing and the performance improvement initiatives, this study is aimed at presenting how EY manages to gain higher efficiency without any loss of quality or compliance.