Offshoring of Accounting: Utilizing the 24 Hour Knowledge Factory to Perform Financial Statement Auditing Xin Pan University of Arizona xpan@email.arizona.edu

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29 Οκτ 2013 (πριν από 4 χρόνια και 11 μέρες)

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1

















Of
fshoring

of
Accounting
: Utilizing the 24 Hour

Knowledg
e Factory to Perform
Financial Sta
tement

Auditing


Xin Pan

University of Arizona

xpan@email.arizona.edu









Copyright 201
1
,
Xin Pan
.

All Rights Reserved
.
For copyright permissions, contact the author directly or
Professor Amar Gupta at The University of Arizona at gupta@arizona.edu.


2



Abstract


The rapid globalization of
world

s economy

and capital flow
is deeply influencing the industry of
Accounting and Auditing.
According to a 2009 report by
Accounting Technology,

even in the

recession,
top 100 accounting firms still kept a 7%~8% annual revenue growth.

On the other hand,
accounting
firms are facing
pre
ssure of
cost control, deliverables


tight deadline
, and
short
ing

of talents supply
.
Then big accounting firms, especially those have global operations, choose to offshore part of the
auditing works.
This paper will
focus on the study of accounting firm

s
offshoring operation, especially
performing

auditing
in a 24
-
hour knowledge factory dimension
.
First,
review

the current status of the
offshoring program

by examining a real case in Deloitte
. Second,
articulate

the
potential choice

(China)

and improvement possibility

by
compar
ing

a 2 s
hift model with a 3 shift model
,
and
by
explor
ing

how to
close the gap
between

US GAAP

(General Accepted Accounting Principles) and IFRS(International
Financial Report Standards)

in the offshoring
situation
. T
h
ird,

analysis

the
financial

statement audit
work

steps

and identify the
auditing
work flow chart
in a 24 hour knowledge

factory model. Finally,
this paper

get to the conclusion that
24 hour auditing is a superior model for multi
-
national accounting
firms

and

represents the future trend in the whole industry.


Keywords
:
accounting and audit outsourcing
,
Deloitte off
-
shore/Indian capacity
,
China
,
24 hour
knowledge factory, offshorin
g




3





Reference:

1.


Building a World Class International Client Service Team

.
Stephen Covel and Neeraj

Goenka(2008)
, (

Deloitte senior manager and consultant
)
.


2.

"Accounting, Auditing, and Bookkeeping Services."


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.
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<
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>

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th

2011 from
:


<
http://www.pwc.com/gi/en/services/financial_statement_audit.jhtml
>

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.

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th

2011 from
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<
http://www.kpmg.com/GR/en/WhatWeDo/Audit/Financial
-
Statement
-
audit/Pages/default.aspx
>

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Finding Focus through Finance Outsourcing”
.

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<
http://www.iqbackoffice.com/
>

6.


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between

USGAAP

and

IFRS
”. Stephen G. Austin &

Norbert Tschakert
.
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<
http://www.swensonadvisor
s.com/assets/MajorDifferencesBetweenUSGAAPandIFRS.pdf
>