QUOTE(Topace111 @ Jul 19 2022, 08:15 PM)
Comparing western and Asia is not easy and there are many factors.
My perspective it's easier to budget due to:
1) In the west, clients quality are generally better. Clients are bigger and can afford to pay more audit fees. This leads to more resources from audit firm and client with higher profits are also easier to audit due to higher materiality. Audit staffs can focus on analytics than manual work.
2) Currency exchange is better leading to easier targets
3) Audit staffs also higher quality coming from better schools
4) As most western clients have higher standard of governance and culture, the audit work is easier too. Eastern culture tend to be harder for auditors
Asia is developing country as compared to mature western so there are many other aspects. A key development is that in the west, only the bigger companies need to be audited so all the audit work monopolised by big4. In Asia or Malaysia for example, even small sdn bhd needs to be audited. This creates a lot of job for smaller audit firms. There is a law not too long ago that provided some exemptions but tax law may be contradicted. I don't really follow the news anymore but in Asia the focus is still more on quantity than quality.
Yes totally agree with you. Always wondered if we had a country with stronger currency and not so focus on quantity, perhaps Asia could have been a nicer place to work in as well.. But again who knows, some would say grass is greener on the other side etc.My perspective it's easier to budget due to:
1) In the west, clients quality are generally better. Clients are bigger and can afford to pay more audit fees. This leads to more resources from audit firm and client with higher profits are also easier to audit due to higher materiality. Audit staffs can focus on analytics than manual work.
2) Currency exchange is better leading to easier targets
3) Audit staffs also higher quality coming from better schools
4) As most western clients have higher standard of governance and culture, the audit work is easier too. Eastern culture tend to be harder for auditors
Asia is developing country as compared to mature western so there are many other aspects. A key development is that in the west, only the bigger companies need to be audited so all the audit work monopolised by big4. In Asia or Malaysia for example, even small sdn bhd needs to be audited. This creates a lot of job for smaller audit firms. There is a law not too long ago that provided some exemptions but tax law may be contradicted. I don't really follow the news anymore but in Asia the focus is still more on quantity than quality.
Jul 20 2022, 10:10 AM

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