Where Is Public Company Auditing Headed?

Dana R. Hermanson, PhD, Heather M. Hermanson, PhD, and Susan D. Hermanson, PhD

In BriefWhat does the future hold for public company auditing in the United States, and what are the implications for professionals, regulators, and educators? While the authors are strong proponents of the auditing profession and its contribution to society, they see several emerging areas of concern: 1) the relatively slow growth of the public company auditing market, 2) the increasingly rigorous PCAOB inspections, 3) the profession's relatively low starting pay and intense working conditions, and 4) the far-reaching impact of emerging technology. Overall, the public company auditing profession is facing some serious challenges, but the authors believe that steps can be taken now to bolster the long-term prospects of the profession.