Strategy

Preparing Tomorrow’s Audit Workforce: A True Learning Experience


by Erin Shannon

Auditors will need to be proficient in applying data-science and advanced analytics and effectively communicating data-rich stories.

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It is no secret that the nature of many professions is rapidly shifting. Advances in technology continue to redefine how companies do business, and the workforce for such professions has to adapt at the same pace. This is especially true for the professional services profession – particularly the audit and assurance profession.

The audit and assurance profession continues to grow at a fast pace. With this rise is a new type of auditor - an auditor who possesses skills beyond traditional technical proficiencies, creative thinking and a broad understanding of the risks facing businesses today. Tomorrow’s auditors also need to be versed in the art of communicating data-rich stories and possess enhanced analytical skills in order to deliver valuable business insights for their clients and the investing public to consider. They will also need to have a strong and robust knowledge that goes beyond audit and accounting proficiencies and focuses on key areas of a STEM education. 

Developing these competencies in aspiring auditors will require a sustained and shared commitment from both audit firms and educators. Recently, Deloitte and the Deloitte Foundation hosted the 2018 National Audit Innovation Campus Challenge (AICC) at Deloitte University in Westlake, Texas. The AICC is a nationally-driven program attracting students and faculty from across the country to participate, and it has become one of Deloitte’s important tools and methods for developing future talent as the audit and assurance profession continues to evolve.  

According to the Occupational Outlook Handbook, 2014-2024, from the U.S. Bureau of Labor Statistics, the number of accountants and auditors employed in the United States is expected to grow by 11 percent from 2014 to 2024 -- faster than the average for all other occupations. However, changes in the professional services industry and what motivates next-generation talent today are having an impact on the availability of accountants and auditors. Audit firms will likely be well-served if they commit to developing future auditors in engaging ways, and they need to be equipped with the right tools.  

Guided by faculty advisors and Deloitte subject matter leaders, students at the AICC were challenged to develop new and innovative approaches to deliver audit and assurance services to the marketplace. Student teams from 52 colleges and universities participated, with 12 teams advancing to the final round. Among the collegiate national finalists were: University of Arizona, Baruch College, Brigham Young University, Clemson University, University of Illinois, University of Kansas, Louisiana State University, Michigan State University, University of Nebraska-Lincoln, Rutgers University, University of South Carolina and Trinity University. 

The winning submission of this year’s champion, the University of Arizona, focused on a recommendation to enter the market of providing assurance on corporate sustainability reports in anticipation of potential stakeholder demand in the coming years. The submission cited Deloitte’s unique position to conduct a sustainability audit and introduced an artificial intelligence tool that could help auditors measure an array of environmental metrics and compare those readings to sustainability guidance. 

Deloitte has introduced a number of the audit and assurance profession’s leading technology applications to help shape the audit of the future. Sustaining our momentum in transforming and further evolving the audit requires having the right talent. That’s why programs such as the AICC matter. At Deloitte, our people are our most valuable asset, and it is imperative that the next-generation of talent help deliver new solutions to stakeholders and clients. It is important to retool the traditional auditor toolkit by helping the profession and its professionals better intersect with technologies like artificial intelligence, robotics, and potentially even drones. 

So, more specifically, what are the tools, experience, and expertise that the future auditor needs to have? 

Auditors will need to be proficient in:

  • Applying data-science and advanced analytics to gain a deeper understanding of business risk and internal controls
  • Effectively communicating data-rich stories to provide tangible insights to clients

The challenge in developing these competencies in aspiring auditors rests with the audit profession and academia. The AICC is just one mechanism that looks to harness the creative power and innovative thinking of college students to further jumpstart these applications for the profession. 

Earlier this year, the Deloitte Foundation and the American Accounting Association also hosted the 2018 Robert M. Trueblood Seminars for Professors. More than 60 leading accounting and auditing educators and professionals attended sessions. This year’s program covered many challenging financial accounting and auditing issues that professors can incorporate into their classrooms and that help keep university faculty and their students connected to the real-world issues and challenges currently facing the audit and assurance, and accounting professions.  

These types of programs are important examples of how we as a profession can help prepare the next generation for an enduring career opportunity in audit and continuously enhance the trust of the investing public and the capital markets. Ultimately, it is up to the leaders of our profession to prepare tomorrow’s auditors to fulfill that important purpose and help equip these young professionals with the right tools and knowledge to be successful.

Erin Shannon is the Managing Director, Change Management at Deloitte & Touche LLP.