Outsourcing Audit Work Helps Mid-Size Accounting Firm Stay Afloat During COVID-19
The Client Overview
KMP is a leading Chartered Accountancy and Business Advisory firm in Croydon, Surrey. They provide a range of bespoke solutions & specialist advice in areas such as Tax Services, Audit, Financial Planning, Accounts, Corporate Finance, Business Start Ups, Payroll Services, VAT and Bookkeeping. Their audit services for over 200 clients as a part of their suite of services. After using QXAS to support peak time limited company accounts production, our client made a decision to expand their use of QX for payroll and auto-enrolment services.
At a glance
50% cost reductions in hiring & ability to take on more clients for audit work.
Using QXAS, our client were able to:
Achieve faster turnaround on audits.
Ability to take on more clients during COVID-19.
Cut back on the time spent on hiring audit staff members.
Focus on high-end activities and practice growth.
Access skilled and qualified staff at a fraction of the cost.
As an established accounting practice in the Croydon area, KMP has a portfolio of large clients with 60-70 annual audits.
However, with a large group of new clients coming on board within a short duration of time, the overall workload for auditing increased significantly. With over 6-7 audits to be processed each month, along with a variety of daily and monthly assignments & advisory services, KMP was struggling with hiring an audit resource within the timeframe.
Our client spoke about how the main challenge in managing the peak-season audit workload.
“We were struggling to find a member of staff to add to our audit team. We felt that because of COVID-19 we needed to be able to respond quickly to our client’s needs. People needed their audits done quickly.
And to try and recruit anyone with an audit background in the UK – it’s like finding a needle in a haystack.”
How we helped
We took on the entire responsibility, of processing 5-6 audits on a monthly basis, right from initial planning and gathering data to liasing with the audit partner.
Some of the key activities we carried out include:
• Determining the materiality.
• Initial Planning meeting with the Audit Partner.
• Understanding the entity and risks associated with it.
• Determining an audit process and plan, based on the risks associated.
• Test different financial items – expenses, income, balance sheet – on the basis of materiality calculated.
• All discrepancies and variances are noted and reported to audit partner.
• Discussing the variances with the Audit Partner.
• Review of the Audit and Accounts by the Audit Partner.
• Draft management letter and representation letter.
• Signing off of the balance sheet by the audit partner.
- KMP’s clients are happy as they were able to maintain the speed and deliver faster turnaround of audits – which was crucial for most businesses restructuring due to COVID-19.
- Allowed KMP’s front-end team in the UK to focus on high-end activities and adjusting with the changes during COVID-19.
- Process improvements, technology innovations and Audit expertise at QXAS are available to the KMP.
- Skilled and qualified staff at QXAS are available at a fraction of cost, leading to 50% cost reductions in audit processing.
- The ability to manage workload take on more clients for audit work without risks gave the KMP flexibility and the confidence around capacity planning.
“Would I recommend you guys to somebody? That would be an emphatic yes. You’ve ticked all the boxes. You responded in a very efficient timescale which nobody else even in the UK has been able to.”
Romit Basu, Audit Partner, Kings Mill Partnership.
“If someone told me we can’t find an auditor – I’d say I have someone you can go to.It’s so difficult to get audit staff to join a smaller practice – which is why audit support services is a really good service. It can add a lot of value to smaller practices.”
Priyesh Shavdia, Partner, Kings Mill Partnership.
Watch KMP tell their audit success stories and outsourcing experience: