Reasons for the growing demand on auditing

Why demand for auditing keeps rising:

1. Agency problems & information asymmetry

Separation of ownership–control (shareholders vs. management) → need independent assurance to trust reported results.

2. Regulatory and listing requirements

Laws, stock exchanges, lenders, and donors often mandate audits (e.g., for PLCs, financial institutions, charities, grant recipients).

3. Complexity of business & reporting

Group structures, fair values, financial instruments, revenue recognition, estimates (ECL, impairments) → users want expert validation.

4. Globalisation & cross-border capital

Foreign investors and M&A/IPO activity rely on credible, comparable audited information.

5. Fraud/high-profile failures

Scandals heighten stakeholder skepticism, driving demand for stronger audit and forensic work.

6. Technology & cyber risk

Heavy IT reliance, cloud/outsourcing, data integrity, cybersecurity incidents → assurance over IT controls and systems.

7. Internal control & governance expectations

Boards/Audit Committees want assurance on controls, risk management, compliance (e.g., SOX-style controls, internal audit coordination).

8. Access to finance & lower cost of capital

Audited statements improve credibility → better loan terms, investor confidence.

9. ESG/sustainability & non-financial reporting

Climate, sustainability, and other KPIs now influence value → demand for assurance beyond financials (limited/reasonable).

10. Public sector accountability & NGOs

Taxpayer and donor scrutiny → audits of use of funds, performance, compliance.

11. Digital assets & new business models

Fintech, e-commerce, crypto custody/payment flows → assurance on controls (SOC/ISAE 3402) and reporting.

12. Third-party reliance & supply chains

Customers and partners require independent reports on vendors’ controls (privacy, security, continuity).

In short

1. Each driver increases risk, complexity, or reliance on reported information. 
2. Therefore, raising the need for independent, evidence-based assurance to enhance trust and decision usefulness.