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.

The Reality of Falling Short

Realization rates are a key measure of audit efficiency and profitability, yet many firms fall short of their targets. The industry average sits at 64%, far from the ideal 100%, with 25% of engagements failing to meet realization targets altogether. For firms, this gap represents hours of unbilled work, shrinking margins, and an ongoing struggle to balance client satisfaction with sustainable pricing.

Why is hitting realization targets so difficult? It often comes down to underestimating engagement complexity, unexpected client delays, and inefficiencies in managing workflows. The result? Firms burn through hours they can’t recoup, diminishing the true value of their services.

The Long-Term Impact of Low Realization Rates

Consistently low realization rates signal deeper operational issues. When firms repeatedly absorb additional hours, profitability erodes, and teams face mounting pressure to do more with less. This not only increases burnout but can also lead to rushed work, impacting audit quality and, ultimately, client trust.

Turning the Tide: Practical Solutions for Higher Realization

1. Data-Driven Pricing Models: Use historical data to refine pricing strategies, setting more accurate upfront quotes that reflect the true scope of work.

2. Process Optimization: Automate document requests, streamline communications, and implement real-time tracking tools to minimize wasted hours.

3. Proactive Client Management: Regularly communicate with clients to manage expectations, flag potential delays early, and ensure smooth collaboration.

Achieving realization targets isn’t just about revenue—it’s about building a sustainable, efficient, and client-focused audit practice. Firms that embrace technology and refine their processes will be better positioned to close the realization gap and thrive in an increasingly competitive landscape.

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.