Updated: January 6, 2014
Industry Intelligence from First Research, a division of Hoover's (a D&B company)
Professional Services Growth Rises
The output of US professional services is forecast to grow at an annual compounded rate of 5 percent between 2013 and 2017. Data Published: September 2013
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
Quarterly Industry Update
Trend: Regulations in Accounting Industry to Increase - Additional accountancy rules are expected in the US to give investors more information about the entities that provide opinions on companies' financial statements. The Public Company Accounting Oversight Board, the industry regulator in the US, recently outlined new audit policies to implement by the end of 2014. A key reform would require identifying the name of the lead partner in charge of each client's audit, as well as all outside firms that worked on the report. Supporters of the proposal say it will help investors examine the track record of an auditor and increase the accountability of auditors. Opponents claim there is no connection between partner disclosure and audit quality.
Industry Impact - Accounting firms may need to adopt new policies in response to increased industry regulation. Companies that respond quickly by disclosing more information may gain a reputation for higher quality audit reports.