Audit engagements are among the most resource-intensive services for CPA firms. Budget overruns, delays, and rework often lead to reduced realization rates. For small to mid-sized firms, the challenge is magnified by limited staff and high costs.
Challenges
Client CPA Firm faced challenges with Audit engagements that demanded precision, documentation, and compliance, making them prone to:
- Overruns in hours due to incomplete client data.
- Rework caused by missed details.
- Senior staff spending excessive time on PBC (Prepared by Client) schedules and reconciliations.
This 20-client CPA firm struggled to meet audit budgets, with realization rates falling below 65%. Senior auditors spent 30% of their time on tasks like reconciliations, data validation, and documentation review, leaving little room for high-value advisory services.
Solution
By collaborating with MNCO Global, the firm achieved:
- Streamlined PBC Work: Offshore teams managed client-provided schedules, ensuring accuracy and completeness.
- Data Reconciliations: Offshore professionals handled reconciliations, freeing up senior staff for critical analysis.
- Faster Turnaround: Offshore support reduced engagement time by 20%, enabling on-time delivery.
Benefits
The firm improved realization rates to 83%; optimized their budgets and took on more audit clients without hiring additional local staff.
