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Read Example 2 and explain your take away. Add additional information. Your document should include minimum 200 words plus credible references.
Example 2:
Should the firms continue to stay focused on only audit and tax, or should they explore other areas of opportunities?
Auditing is the lifeblood of every successful organization, and a significant number of firms rely on auditing as it provides insightful information about the business’s performance. Many audit firms in the U.S.A. have been significant in providing audit services to numerous companies, providing financial literacy to the companies. Although auditing firms provide auditing services, there is a need to provide other services. Although the auditing firms have been carrying out the auditing activities, there is a need to do other services to improve the companies. This post will evaluate the services that the audit companies should provide apart from the audit services.
The audit firms should venture into the outsourcing of accounts, which has gained prevalence among multi-national corporations. Accounts outsourcing has led to improved team scalability, minimized legislative stress, increased accessibility of trained and qualified accountants, and reduced recruitment cost (Kim, 2017). The outsourcing of accounts enhances the provision of services to the companies without physical movement, thus saving on the cost of transport and movement from one place to another. Also, outsourcing improves the quality of work done since experts are hired who have the requisite knowledge and skills; hence, improving the quality of audit services and other operations performed by the firm. Recruitment cost is also reduced since there is no need to train the accountants and the auditors regularly since there are used to work done; thus, they are familiar with the business activities. Account outsourcing is a great pathway towards acquiring a sustainable method of carrying out audit practice, reducing the cost of operations, and maintaining audit quality.
The audit firms should promote return on collaboration, which would promote sustainability, innovation, and improved performance. Collaboration entails teamwork and coordination of duties and other responsibilities to ensure that various activities are carried out in a quick manner and a coordinated method. The return on collaboration is important to the business performance since it helps the companies implement tasks and other activities in the shortest time possible and reduces the incidences of work-life imbalances, thus improving the ventures’ productivity. Therefore, the audit firms should provide insightful information regarding return on collaboration to help the companies that they help in their audit work and improve on their internal segments, which would have a positive impact on their performance. Audit firms should take this opportunity to help firms improve their internal function, which would help the firms improve on their productivity levels, increased team spirit, and improved performance.
In essence, audit firms can venture into other activities other than the auditing, financial accounting, taxation, and financial management functions that the firms carry out as their main responsibilities. A niche exists in the market that is supposedly needed to be filled, such as outsourcing accounts and improving the firms’ collaborative functions. Account outsourcing is a new trend that has gained prevalence among firms because it has attributed to the business’s success by scaling up profitability, improving the audit quality, and reducing the cost of operations. On the other hand, the adoption of return on collaboration technique is another way that the audit firms should adopt to promote internal functions such as groups and individual performance, which has an overall impact on the performance of the business.
References:
Kim, S. H. (2017). Do Collaborative Relationships in Supply Chain Pay-Off?. International Journal, 7(1).https://www.researchgate.net/profile/Seock_Jin_Hon…