{"id":7187,"date":"2025-03-06T10:36:38","date_gmt":"2025-03-06T10:36:38","guid":{"rendered":"https:\/\/qxaccounting.com\/uk\/?post_type=casestudies&p=7187"},"modified":"2025-08-11T17:12:14","modified_gmt":"2025-08-11T17:12:14","slug":"outsourcing-audit-work-helps-accounting-firm-stay-afloat-during-covid-19","status":"publish","type":"casestudies","link":"https:\/\/qxaccounting.com\/uk\/case-study\/outsourcing-audit-work-helps-accounting-firm-stay-afloat-during-covid-19\/","title":{"rendered":"Outsourcing audit work helps accounting firm stay afloat during COVID-19"},"content":{"rendered":"\r\n
\r\n
\r\n
\r\n
\r\n
\r\n

THE CLIENT OVERVIEW<\/h2>\n

KMP is a leading Chartered Accountancy and Business Advisory firm in Croydon, Surrey. They provide a range of bespoke solutions & specialist advice in areas such as Tax Services, Audit, Financial Planning, Accounts, Corporate Finance, Business Start Ups, Payroll Services, VAT and Bookkeeping. Their audit services for over 200 clients as a part of their suite of services. After using QXAS to support peak time limited company accounts production, our client made a decision to expand their use of QX for payroll and auto-enrolment services.<\/p>\n <\/div>\r\n

\r\n \"\"\/<\/div>\r\n <\/div>\r\n
\r\n
\r\n

THE CHALLENGE<\/h2>\n

As an established accounting practice in the Croydon area, KMP has a portfolio of large clients with 60-70 annual audits.<\/strong><\/p>\n

However, with a large group of new clients coming on board within a short duration of time, the overall workload for auditing increased significantly. With over 6-7 audits to be processed each month, along with a variety of daily and monthly assignments & advisory services, KMP was struggling with hiring an audit resource within the timeframe.<\/p>\n

Our client spoke about how the main challenge in managing the peak-season audit workload.<\/strong><\/p>\n

\u201cWe were struggling to find a member of staff to add to our audit team. We felt that because of COVID-19 we needed to be able to respond quickly to our client\u2019s needs. People needed their audits done quickly.<\/p>\n

And to try and recruit anyone with an audit background in the UK \u2013 it\u2019s like finding a needle in a haystack.<\/p>\n <\/div>\r\n

\r\n
\r\n

AT A GLANCE<\/h3>\n

50% cost reductions in hiring & ability to take on more clients for audit work.<\/h4>\n

Using QXAS, our client were able to:<\/h5>\n
    \n
  • Achieve faster turnaround on audits.<\/li>\n
  • Ability to take on more clients during COVID-19.<\/li>\n
  • Cut back on the time spent on hiring audit staff members.<\/li>\n
  • Focus on high-end activities and practice growth<\/li>\n
  • Access skilled and qualified staff at a fraction of the cost.<\/li>\n<\/ul>\n <\/div>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n<\/section>\r\n\r\n\n\n
    \r\n
    \r\n

    HOW WE HELPED<\/h2>\n

    We took on the entire responsibility, of processing 5-6 audits on a monthly basis, right from initial planning and gathering data to liasing with the audit partner.<\/p>\n

    Some of the key activities we carried out include:<\/p>\n

    PLANNING STAGE<\/h3>\n
      \n
    • Determining the materiality.<\/li>\n
    • Initial Planning meeting with the Audit Partner.<\/li>\n
    • Understanding the entity and risks associated with it.<\/li>\n
    • Determining an audit process and plan, based on the risks associated.<\/li>\n<\/ul>\n

      EXECUTION<\/h3>\n
        \n
      • Test different financial items \u2013 expenses, income, balance sheet \u2013 on the basis of materiality calculated.<\/li>\n
      • All discrepancies and variances are noted and reported to audit partner.<\/li>\n<\/ul>\n

        COMPLETION<\/h3>\n
          \n
        • Discussing the variances with the Audit Partner.<\/li>\n
        • Review of the Audit and Accounts by the Audit Partner.<\/li>\n
        • Draft management letter and representation letter.<\/li>\n<\/ul>\n <\/div>\r\n<\/section>\n\n
          \r\n
          \r\n

          SERVICES DELIVERED<\/h2>\n
            \n
          • KMP\u2019s clients are happy as they were able to maintain the speed and deliver faster turnaround of audits \u2013 which was crucial for most businesses restructuring due to COVID-19.<\/li>\n
          • Allowed KMP\u2019s front-end team in the UK to focus on high-end activities and adjusting with the changes during COVID-19.<\/li>\n
          • Process improvements, technology innovations and Audit expertise at QXAS are available to the KMP.<\/li>\n
          • Skilled and qualified staff at QXAS are available at a fraction of cost, leading to 50% cost reductions in audit processing.<\/li>\n
          • The ability to manage workload take on more clients for audit work without risks gave the KMP flexibility and the confidence around capacity planning.<\/li>\n<\/ul>\n<\/div>\r\n<\/section>\n\n\r\n
            \r\n
            \r\n
            \r\n
            \r\n
            \r\n
            \r\n

            RECOMMENDATION<\/h4>\r\n\r\n
            \r\n

            \u201cWould I recommend you guys to somebody? That would be an emphatic yes. You\u2019ve ticked all the boxes. You responded in a very efficient timescale which nobody else even in the UK has been able to.\u201d<\/p>\n

            Romit Basu, Audit Partner, Kings Mill Partnership<\/strong><\/h5>\n <\/div>\r\n
            \r\n

            \u201cIf someone told me we can\u2019t find an auditor \u2013 I\u2019d say I have someone you can go to.It\u2019s so difficult to get audit staff to join a smaller practice \u2013 which is why audit support services is a really good service. It can add a lot of value”<\/p>\n

            Priyesh Shavdia, Partner, Kings Mill Partnership<\/h5>\n <\/div>\r\n \r\n<\/div>\r\n
            \r\n