Auditing Services Market

Global Auditing Services Market Size (2024 to 2029)

The global auditing services market is estimated to be worth USD 277.2 billion by 2029 from USD 226.6 billion in 2024, growing at a CAGR of 4.11% from 2024 to 2029.

Auditing is described as the assessment of the accuracy and dependability of financial and non-financial data, as well as the systems and processes that record and summarise such data. Audit firms provide integrated, strategic, and enlarged audit reports to address concerns and opportunities that affect a company's long-term worth. Auditing services are independent reporting procedures that objectively evaluate a company's financial records and other financial activities to satisfy regulators, investors, directors, and managers that the financial statements are accurate. Shared service delivery models may enable audit firms to collaborate with companies specializing in digital technologies such as big data, analytics, machine learning, mobile computing, and business intelligence. Data analytics services are poised to emerge as new sources of revenue generation that can supplement auditing firms' core business.

Current Scenario of the Global Auditing Services Market

Over the forecast period, the global auditing services market is expected to rise due to increasingly authoritarian government rules surrounding financial disclosure and reporting. In addition, one significant trend in the auditing services market has been market consolidation. As a result, many auditing firms have been purchased by major accounting firms to expand their service lines or strengthen their existing auditing services.

MARKET DRIVERS

The growing corporate spending on financial audits and recording encourages new entrants to choose auditing services is one of the major factors propelling the auditing services market expansion.

Furthermore, rising demand for auditing services across various industries, such as healthcare, IT & telecommunications, BFSI, and others, to manage businesses' workflow is likely to fuel the expansion of the auditing services market throughout the forecast period. Technological advancements in audit services to assist auditors in gaining actionable insights by leveraging financial numbers and graphs from organizations are supporting the growth of the auditing services market.

MARKET RESTRAINTS

Limited awareness about financial auditing services among people is a significant issue projected to limit the global market's growth over the forecast period. Furthermore, another factor launched to impede the development of the auditing services market over the forecast period is an increase in people's inclination for automation or artificial intelligence (AI) across various industries.

Impact Of COVID-19 On the Global Auditing Services Market

COVID-19 has considerably sped the evolution toward a "virtual" audit. While the audit process was already transforming due to the emergence of new technology and rising investor expectations, COVID-19 has significantly accelerated the evolution toward a "virtual" audit. Uncertainty has sparked innovation, aided by the rapid economic move to digital modes of operation. With the closing of offices and the need for physical separation, auditors combine old and new technology to conduct audits remotely, from remote data extraction and analysis to inventory counts using drones. In addition, artificial Intelligence has lately been included in the auditing process.

REPORT COVERAGE

SEGMENTAL ANALYSIS 

Global Auditing Services Market Analysis By Type

The external audit segment is expected to grow at a 4.5% compound annual growth rate (CAGR) to reach US$56.7 billion by the conclusion of the analysis period. For the following five years, growth in the Internal Audit Services market has been revised to 4.8% CAGR. The global Auditing Services market is now dominated by this category, accounting for 18.1% of the total. Due to increasing companies' preference for successfully managing fraud risks, defending company interests, and promoting business performance, the internal segment is predicted to grow faster over the projection period.

Global Auditing Services Market Analysis By Service

The market is bifurcated into Operational Audits, Financial Audits, Advisory and Consulting, and Investigation Audit. In 2017, the financial statement audit segment had a market share of more than 60.0 percent. Due to strict laws governing financial audits and reporting, businesses are predicted to grow at the fastest rate over the forecast period.

Global Auditing Services Market Analysis By End-Use

The market has been segmented into BFSI, government, manufacturing, healthcare, retail & consumer, IT & communications. In 2017, the BFSI category accounted for roughly 21.0 percent of total revenue. During the projected period, the segment is expected to grow at the fastest rate.

REGIONAL ANALYSIS 

Because of the regulatory environment, the presence of many multinational corporations, and the rising adoption of efficient internal auditing and reporting practices by companies in various regions, North America is predicted to dominate the global auditing services market in terms of revenue during the forecast period.

The Auditing Services market in the United States is expected to be worth USD 62.8 billion by 2020. The country currently controls 28.85 percent of the global market. Canada is expected to grow at a 3.3 percent annual rate between 2021 and 2026. During the analysis period, Latin America will grow at a CAGR of 3.2 percent.

China is expected to reach a market size of USD 50.3 billion in 2027, with a CAGR of 6.7 percent from 2016 to 2026, and Japan at 2.4%. In India, 70% of all statutory auditors operate with one of the Big 4, indicating that smaller auditors need help breaking into the upper end of the audit market. The Asia-Pacific market is expected to reach USD 38.5 billion by 2026, led by countries like Australia, India, and South Korea. Germany is expected to increase at a 3 percent compound annual growth rate (CAGR), while the rest of Europe's market will reach USD 50.3 billion by 2026.

KEY PLAYERS IN THE AUDITING SERVICES MARKET

Companies playing a notable role in the global auditing services market include ProtivitiRSM US, Grant Thornton International Ltd., Moore Stephens International Limited, Mazars, Nexia International Limited, Ernst & Young, Deloitte, KPMG, and PwC.

The four largest accounting companies in the World, based on revenue, are referred to as the "Big Four." Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG) are the names of the Big Four. The Big Four also provide tax, strategy, and management consulting, valuation, market research, assurance, legal advising services, and auditing services.

RECENT HAPPENINGS IN THE MARKET

• In October 2021, KPMG UK will debut KPMG Smart Customer Due Diligence (CDD). This revolutionary cloud-based technology optimizes CDD business operations to minimize the entire cost of KYC compliance, potentially saving up to 40%. 
• In September 2021, Mazars, a leading audit, tax, and advisory firm in the United States, announced today that John Confrey, Rachel Efthemes, Timothy Evans, Melissa Gonzalez, Benjamin Hutterer, Samuel Pizzichillo, and Stephen Saluccio had been named Partners, with effect from September 1, 2021, and Shiv Venkatraman has been named a Principal. 
• Data Solutions Kft. was bought by PricewaterhouseCoopers (PwC) Hungary Ltd. in 2018 to focus on creating new data-based products and solutions and integrating them into the existing portfolio.
• In 2016, KPMG International and IBM Corporation teamed up to integrate Watson's cognitive computing technology into their professional services products. 
• KPMG International and Microsoft Corporation teamed up in 2017 to introduce KPMG Clara. This new smart audit platform is an automated, intelligent, agile, and scalable solution that provides data and analytic capabilities in a single interface. 

DETAILED SEGMENTATION OF THE GLOBAL AUDITING SERVICES MARKET INCLUDED IN THIS REPORT

This research report on the global auditing services market has been segmented and sub-segmented based on type, service, end-use, and region.

By Type

• Internal audit
• External audit

By Service

• Operational Audits
• Financial Audits
• Advisory and Consulting
• Investigation Audit

By End-Use

• BFSI
• Government
• Manufacturing
• Healthcare
• Retail & consumer
• It & communications

By Region

• North America
• Europe
• Asia-pacific
• Latin America
• Middle East and Africa