Audit Firms in 2025: Addressing the Challenges of a Strained Market
Julie Sergent
Content manager
April 2, 2025
5 min
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Audit firms find themselves at a crucial crossroads in 2025. Following a decade of sustained growth, the sector faces a transitional period marked by economic challenges and profound changes in client expectations. This new reality demands rapid adaptation and strategic thinking to maintain competitiveness and ensure sustainable growth.
The year 2025 emerges as a pivotal time for audit firms. The economic slowdown, which began to be felt in 2024, continues to impact the sector. According to a study by Napta, 38% of professionals anticipate a deterioration in the economic situation compared to 2024, while 46% foresee stagnation. This uncertain context compels firms to enhance their vigilance and adapt their strategies.
In response to these challenges, audit firms are adopting a more cautious approach. They are bolstering their strategic vigilance by reducing recruitment in favour of more specialised profiles and prioritising dynamic markets, particularly in North America. The use of forecasting tools becomes crucial for better anticipating needs. Concurrently, investment in internal training is intensifying to strengthen existing skills.
Client expectations are also evolving. They now seek services with higher added value, especially in areas such as cybersecurity, artificial intelligence, and data analysis. This growing demand for specific expertise compels firms to rethink their service offerings and develop new skills internally.
The pressure on margins is intensifying, pushing firms to explore new pricing models. The traditional model based on time spent is being questioned in favour of approaches that value the creation for the client more. Success fees and fixed-fee assignments emerge as promising alternatives, although they require more refined risk management and a better ability to demonstrate the added value of the services provided.
The skills-based approach becomes a central element of the strategy for audit firms in 2025. The precise mapping of internal skills and anticipation of future needs are essential to stay competitive.
The auditor of tomorrow must demonstrate increased sensitivity to numerous subjects, particularly sustainability, as well as great agility in data handling. SÉBASTIEN HUET, Partner, EY
Key skills sought in 2025 include:
To meet these needs, audit firms are intensifying their internal training efforts. Investing in skill development becomes a major strategic focus, even if it means accepting longer periods between contracts.
Accepting longer inter-contracts means investing in training and skill development. Rather than an immediate cost, it is a strategic bet on the medium and long term to enhance internal expertise and better respond to market changes. DANIEL JARJOURA, Managing Director, Avolta
The integration of artificial intelligence into audit practices also poses new challenges. While it enhances the efficiency and accuracy of audits, it also requires rapid upskilling of teams. Firms must find a balance between using these new technologies and maintaining professional judgment, which remains at the heart of an auditor's added value.
Retaining talent, particularly expert profiles, becomes a major issue for audit firms in 2025. The study reveals that talent retention after three years is the primary challenge in recruitment and retention for 59% of respondents. In response to this issue, firms are rethinking their human resource management strategies.
The traditional organisational model, based on a pyramidal structure, is gradually evolving towards a "diamond" model. This new approach places greater importance on expert and senior profiles, thus meeting the increasing demands of clients for expertise.
To attract and retain the best talent, firms are leveraging several mechanisms:
The main challenge rests more on profitability. If you adopt a 'diamond-shaped' model (more experts, fewer juniors), the overall salary cost will be slightly higher. If you are not able to charge higher rates for these more experienced profiles, you will face difficulties. STEPHAN WEBER, COO, Bearing Point Group
Training plays a crucial role in this retention strategy. It not only helps to keep skills up-to-date but also meets collaborators' aspirations for professional development.
The skills-based approach will be the topic of 2025. The attractiveness of advisory missions will be crucial, with a need for a positive impact to attract and retain consultants. And of course, business will remain a conjunctural topic that demands caution, resilience, and motivation. MATHILDE LE COZ, HR Director, Forvis Mazars in France
In a context of pressured margins, optimising operations becomes a priority for audit firms. Operational efficiency is achieved through better resource allocation, finer project management, and the use of advanced technologies to automate certain tasks.
Cross-staffing emerges as a key strategy to optimise resource use. This approach allows reallocating talents where they are most needed, transcending geographical boundaries and internal divisions. It requires, however, a global vision of available skills within the organisation and the ability to mobilise them quickly.
The adoption of advanced technologies plays a crucial role in improving operational efficiency. Artificial intelligence and automation enable the acceleration of certain audit processes, freeing up time for higher-value tasks.
Flexible work arrangements are becoming the norm, with a hybrid approach combining remote work and office presence. This flexibility meets collaborators' expectations while allowing for the maintenance of team cohesion and corporate culture.
In conclusion, audit firms face a period of profound transformation in 2025. The economic challenges, evolving client expectations, and the necessity to develop new skills demand rapid and continuous adaptation. The key to success lies in the ability to:
Audit firms that succeed in navigating this complex environment will be those that combine technical expertise, innovation, and organisational agility.
The future belongs to organisations capable of adapting swiftly while maintaining a high level of quality and expertise in their audit services.
