Our latest white paper, The State of Audit Efficiency: Insights and Strategies to Meet Realization Targets, provides a data-driven analysis of the key obstacles auditors face and offers actionable solutions to streamline engagements. Backed by extensive survey data from auditors in public accounting, this report highlights common pitfalls in the audit process and outlines strategic measures firms can take to improve efficiency and profitability. This insight is one of four key findings uncovered in our research, each offering valuable guidance to help firms navigate audit challenges more effectively.

Why Budget Overruns and Delays Persist

Audit firms, regardless of size or reputation, face an uphill battle in balancing timelines and budgets. The reality is stark: 26% of audits exceed their planned completion dates, while 28% go over their allotted hours. These aren’t just statistics; they represent real-world consequences—strained client relationships, overburdened teams, and compromised audit quality.

Larger firms may handle more complex engagements, but complexity shouldn’t be an excuse for inefficiency. Every hour over budget eats into profitability, while every missed deadline chips away at trust. The pressure to deliver high-quality audits on time and within budget is intense, yet many firms still struggle to escape the cycle of overruns.

The Hidden Costs of Inefficiency

Budget overruns do more than dent a firm's bottom line. They ripple through operations, creating stress for audit teams and frustration for clients. When engagements drag on, firms either absorb the extra hours—hurting realization rates—or pass costs to clients, risking dissatisfaction and future business. Missed deadlines, meanwhile, can cascade into overlapping engagements, intensifying workload pressures and reducing overall capacity.

Strategies to Overcome Budget and Timeline Challenges

1. Automate Repetitive Tasks: Leverage technology to handle time-consuming processes like tracking engagement progress, managing requests, and monitoring deadlines.

2. Set Clear Client Expectations: Educate clients on their role in the audit process, emphasizing timely responses and accurate data to prevent delays.

3. Refine Resource Planning: Use past audit data to better forecast time requirements and allocate resources more effectively.

By addressing inefficiencies head-on, firms can improve both their bottom line and client satisfaction—transforming audit engagements from stressful sprints to smooth, well-managed processes.

For a comprehensive breakdown of these insights and strategies, download our latest white paper, The State of Audit Efficiency: Insights and Strategies to Meet Realization Targets here.