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California CPA Magazine

Audit Confirmations Are Changing—Are You Ready?

Offshoring audit work is often framed as a cost decision. In reality, it is a leadership and infrastructure decision.

For many small and mid-sized firms, the challenge is not ambition—it’s capacity. Staff turnover after year four is common. As professionals gain experience, expectations around compensation, advancement and leadership opportunities increase. Smaller firms may struggle to move quickly enough to meet those expectations, while workloads continue to grow and burnout risk rises.

Larger firms face similar pressures at scale. The broader shortage of accountants is a profession-wide reality.

The question is not whether offshoring exists. It does.

The real question is how to implement it intentionally without compromising quality, culture or data security.

Building an Offshore Model Before It Was Common

I began building an offshore team in 2017, before offshoring became widely adopted across the profession. It was not about reducing costs. It was about creating stability.

At the time, we were experiencing turnover and capacity strain. Simultaneously, I transitioned from our New Jersey office to Wisconsin, which required rethinking how we collaborated—not only offshore, but remotely within the United States.

If this model was going to work, it could not be transactional. It had to be structured and intentional.

When my firm was later acquired, the offshore professionals who had been working with me were invited to join as employees. They chose to transition with us. That loyalty was not contractual—it was relational. To me, that was proof that we had built something meaningful.

Offshoring Requires Infrastructure, Not Just People

Offshoring cannot succeed without guardrails.

At the time, we did not have centralized global infrastructure. I had to evaluate collaboration platforms, establish secure file-sharing methods and create communication protocols that protected confidential client data. It required intentional design and discipline.

Smaller firms may not always have the same technological resources as larger organizations, but the principles remain the same. Data security, clear communication and defined oversight structures are foundational. Without them, offshoring introduces risk instead of reducing it.

One of the most persistent misconceptions is that offshoring means handing off responsibility. 

We are not delegating accountability. We are redistributing work under structured oversight and supervision. The engagement team remains responsible for quality, judgment and client service.

When expectations are clear and review processes are disciplined, quality does not decline. In many cases, it improves because roles become more defined and documentation more consistent.

Our offshore team is not treated as a vendor. They are part of our firm and held to the same expectations and accountability standards as any U.S.-based professional.

Despite time differences, I meet with them regularly, just as I would with any team member domestically. I encourage them to understand not just the task, but the reasoning behind it. We invest in training, provide exposure to engagement-level thinking and challenge them to exercise professional judgment.

When offshore professionals feel included and supported, morale strengthens, engagement increases and quality follows.

Another common concern is that offshoring replaces U.S. jobs.

By redistributing execution-heavy tasks, U.S.-based professionals gain capacity to lead client discussions, strengthen relationships, develop professional judgment and participate more meaningfully in growth and advisory initiatives.

Offshoring becomes a development lever rather than a displacement strategy. It allows firms to strengthen domestic leadership pipelines while maintaining sustainable workloads.

A well-structured offshore model supports more balanced margins, reduced burnout risk and greater deadline flexibility. Firms can extend service coverage across time zones without overburdening individual team members.

We effectively operate with expanded coverage, not by pushing individuals harder, but by distributing work intelligently.

Equally important, diversity of culture, experience and perspective strengthens teams. When embraced intentionally, that diversity becomes an asset rather than a complication.

Without structure, firms may experience communication breakdowns, cultural disconnect, insufficient supervision, data security vulnerabilities and inconsistent quality.

The difference between success and failure lies in intentional design. Clear expectations, secure systems, strong review protocols and inclusive culture are essential.

Offshoring cannot be treated as an afterthought.

When implemented thoughtfully, offshoring is not about cost arbitrage.

It is about building firms that can retain and develop talent, protect audit quality, balance workloads and serve clients effectively in a changing environment.

It requires investment, infrastructure and leadership. And when done well, it strengthens both offshore and domestic teams.

Offshoring: A Leadership Challenge, Not a Line Item

Firms that succeed treat offshoring as an operational strategy—not just a budget decision—and understand how it can transform their firm’s capacity and resilience.

The confirmation letter is a fundamental audit evidence tool in CPA practices. And new PCAOB and AICPA standards are rewriting the rules on confirmation letters. In this article, CalCPA Accounting Principles and Assurance Services Committee member 

, explains what every CPA needs to know about the revised PCAOB AS 2310 (effective June 15, 2025) and the AICPA Proposed SAS on External Confirmations (February 2025) to help update processes in light of the new standards. 

Topics covered include the legal nature of confirmation letters; their classification by form and application area; a detailed analysis of material 2024–26 regulatory changes across PCAOB and GAAS; the critical Direct Access principle; digitization risks and opportunities; workflow adaptation steps; common inspection deficiencies; and the impact on auditor liability. 

The confirmation letter is a fundamental audit evidence tool in CPA practices. And new PCAOB and AICPA standards are rewriting the rules on confirmation letters. Here’s what CPAs need to know.

Audit Confirmations Are Changing—Are You Ready?

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