More than 600 companies will have to change their auditors over the next four years under the Companies Act, initiating a significant transformation in India’s audit market that occurs only once a decade. This impending change presents a unique opportunity for audit firms to secure prestigious clients while also posing the risk of long-standing accounts slipping away. As a result, a fierce competition has erupted among top audit firms, as they strive to equip themselves with the right talent for upcoming client bids and pitches.
The Big Four audit firms—KPMG, Deloitte, EY, and PwC—are currently expanding their audit teams by adding forensic analysts, tax auditors, and chartered accountants. Other competitors, such as BDO and Grant Thornton, are also positioning themselves to capture their share of the anticipated opportunities.
Senior partners within these firms have been advised to retain their top talents by offering incentives such as global postings or enhanced bonuses. According to a senior executive in one of the Big Four firms, the audit team currently constitutes 15% of the firm’s overall workforce, and they are actively hiring with the rotation in mind. “We are looking for partners who are experts in emerging technologies to cater to the audits of new-age firms,” the executive shared, opting to remain anonymous.
In an emailed response to Mint, a spokesperson for Walker Chandiok & Co LLP, which is affiliated with consulting firm Grant Thornton, stated, “Over the next three years or so, we expect our teams to grow close to 100%.” The firm views this situation as an opportunity to leverage technology in audit processes, incorporating a healthy mix of new audit automation tools led by AI along with the recruitment of skilled employees.
Walker Chandiok & Co LLP currently employs 2,500 auditors and acknowledges that this could represent the largest hiring spree in the company’s history. Notably, about 60% of their hiring is conducted through internal referrals. Given that some other firms will also end up being ‘net losers’ during this rotation opportunity, we believe there will be a shift of personnel from those firms to firms like ours,” the spokesperson added.
Under the Companies Act of 2013, firms will be required to make these changes, heralding a new era in the auditing landscape in India.
