Stress needs an audit too: Tragic death of EY employee sparks concerns over intense work pressure & client demands
EY Global, this month has brought the spotlight on the prevailing intense work pressure in the audit profession as firms grapple with clients imposing tight deadlines, growing complexity of audits, a spike in disclosures, heightened regulatory scrutiny, and an unfavourable risk-reward ratio.
Leading auditors say a key reason for increased work pressure is from the client side, who often pushes auditors to crunch deadlines for results announcements.
Meeting tight deadlines is viewed as a sign of professionalism and efficiency, and, in some cases, also due to alignment with global standards. For instance, if the full-year results of a company were to be announced in the fourth week of April, the chief financial officer may want them by the third week.
«The problem is the company's finance and accounts departments are not prepared for the change, as they operate on old timelines. This shifts the pressure onto auditors, who have a smaller window to work within. It places significant strain on firm's audit staff, especially during results season,» said one of India's top auditors, speaking on condition of anonymity. Senior Big Four partners, who manage large accounts and have stiff revenue targets, choose to keep the client happy instead of setting realistic expectations upfront. The recent past has seen a surge in company disclosures. Adoption of IFRS, additional Companies Act requirements, and new ministry of corporate affairs disclosures have compounded auditors' workloads.
The complexity of audits has risen in
