Many companies struggle to find employees who can perform audits. Here’s why.
Nonprofit accounting audit services can be handled by staff or by a consulting firm, CPA, or another nonprofit accounting service. Larger nonprofits who seek employees to perform audits may find the task harder than it looks. Research suggests that filling internal auditing positions is challenging.
A study conducted by Deloitte found that 13% of chief audit executives (CAE) were very satisfied with the skills of their audit teams. That’s a lot of people who are less than thrilled with their teams! More than half are dissatisfied with the skills of their teams, which leaves a lot of room for improvement.
Many companies today struggle to fill vacancies on their internal audit teams. It’s not your imagination – it’s hard to find skilled auditors, and here’s why.
Lack of Formal Training in Auditing Skills
Nonprofit audits require extensive knowledge of both the nonprofit world and accounting. Specialized programs to teach auditing skills are few and far between, with only a handful of universities offering auditing majors and courses. Students interested in auditing tend to have general accounting or taxation majors, which does not prepare them adequately to fill vacancies on auditing teams. It’s no wonder that a PWC report found that the number one challenge facing auditing teams is finding qualified candidates and managers for existing employees.
New graduates entering the accounting profession who have majored in taxation or general accounting are more likely to obtain positions in the accounting department of an organization rather than in the auditing area. If they do land an entry-level position in the auditing area, it will be years before they’re able to lead teams. And during that time, senior level people may retire or move to other positions, leaving vacancies that are difficult to fill.
Leaders Needed
Companies seeking experienced nonprofit auditors may find it even harder to fill open vacancies. The hardest task is to find people with 5 to 10 years of experience in the field. People with experience in the industry are in great demand and may be courted by larger firms, drawing talent out of smaller nonprofits just when it’s needed the most.
More Training Needed
Even among those who work in the internal audit department, more training is needed. Auditing professionals need more training, especially in areas of risk management such as cybersecurity. All professionals need advanced training to keep their skills fresh, but for nonprofit auditing professionals, it’s critical that they keep abreast of the latest changes in the field. A mistake in this area could be costly.
Opportunities for Professional Development
Keep your eyes open for professional development opportunities for your team so that they can obtain the skills needed to help with audits. You may need to send them to conferences, seminars, or other events where such classes are offered. By investing in your team’s professional development, you’re demonstrating to them that they are valued, which goes a long way towards employee retention.
Nonprofit Accounting Audit Services
For companies struggling to fill vacancies, outsourcing nonprofit accounting audit services may be the answer. Firms such as Beck & Company are Washington DC area nonprofit accounting auditors and CPAs that provide services nationwide to nonprofits. Services include auditing, of course, but also consulting on a wide range of accounting areas that impact nonprofits.
For more information, please contact us at 703-834-0776 x 8001.