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Prepare for poor quality, no local support, and redooing work
You all better learn fast
It gets crappy
At PWC, you digital upskill 🤣
The big problem on the tax side is we create a bunch of staff and seniors who have no experience but are expected top be able to review successfully. But the manager expectation does not change so knowledge is supposed to be magically obtained before this point
THIS 🙌🙌🙌
Agree. These global delivery centers are garbage but I think they see in the long run the Big4 is planning together to decrease audit quality and tax compliance quality since there is only 4 of them left and they operate an ogmonopoly.
They also lobby heavily in legislators around the world that about too much regulation and how they need less oversight. In my view, the firm decreases quality every year, regulators get mad and fine and instead of improve, they change the rules for themselves
We’re talking about global delivery centers that have taken off in the past 5 years. Without a doubt, audit quality from 10-15 years ago is through the roof. No one disagrees that Sarbanes-Oxley has increased audit quality in the US and has had positive ripple effects across the world.
My concern is with all the outsourcing and long term effects of this on developing talent. I’m concerned that audit quality has decreased the past 3-5 years.
I also agree with you there are positive aspects of how big our firms are. Are RSM, GT, BDO have good control of a F500 audit? Most times not as at Deloitte I can pull across validations, Tax, actuary specialists which are some of the best. It’s the only way we can audit F500 companies.
To be clear, I’m not advocating breaking up the firms as lawmakers in the UK are. The only way financial markets work today is because we can audit these huge companies with the vast specialists we have.
Do I think there should be more competitors that will lead to a increase in quality? Yes. If the government forces it through break ups, this will lead to a decrease so the market will have to build this.
My concern comes down to these global delivery centers. We opened one up in Brazil that is garbage that both audits and tax compliance is done out of. While the US/Global push for a strong increase and a common audit adoption standard, my concern is how centers play and my firms approach to the problems they have faced in different local country firms has been with them is to fight local country regulators on topics that I think isn’t right.
Does that make sense?
This is the same life cycle as IT in the 90’s and early 2000’s. This is not some new phenomenon. It will swing back. Job structures will change but GDS isn’t a long term solution. It’s an attempt to flatten peaks and valleys of resource deployment issues.
I think their plan is to eventually replace gdm with bots
PwC4 nailed it.