As fees stagnate, audit firms struggle to retain talent

Just 10% nominal rise in income over five years, real income growth negative

- MANU KAUSHIK

RISING RISKS, COUPLED with absence of any rise in fees in real terms over recent years, have made rendering of audit services less remunerative, industry players said. The auditors of the Big Five firms claim that the risk-reward matrix is getting unfavourable for the firms, which is also affecting their ability to attract talents.

"The audit income in India for our top companies aren't increasing at the pace it ought to. This is affecting the ability of firms to pay attractive compensation and retain the best people. In the UK, in the last 5 years, audit fees have increased by 85% for the top 100 audit companies whereas in India that number is under 10%," said Vishesh C Chandiok, CEO, Grant Thornton Bharat.