This paper explores offshoring in auditing services with a focus on how audit firms make use of offshoring. The study is derived from qualitative studies and is based on Grounded Theory. The american literature and the danish empirical data have several deviations in relation to the challenges experienced in auditing, so this study was prepared with an exploratory research design. The theory describes the critical attitudes of local auditors towards foreign auditors. In contrast, the empirical data describes the positive effects that foreign auditors have contributed over the years. Offshoring helps provide low audit fees as well as time savings for local audit firms. However, there are several challenges in the form of low motivation and audit quality among foreign auditors. According to the literature, these challenges stem from the negative, sceptical approach that local auditors have towards foreign ones. This finding was the motivation for this study, which set out to investigate how offshoring as a strategy can be optimised, with a focus on creating a stronger relationship between local and foreign auditors through personal relationships. At the same time, local auditors must involve the foreign auditors more in the planning phase of auditing in order to optimise the understanding of their clients. This will result in a better knowledge of sharing customer information as well as a better understanding of the standardised forms that need to be used.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||111|