Offshoring Tax and Audit Procedures: Implications for U.S.-Based Employee Education

Large accounting firms are increasingly performing audit and tax work for U.S.-based clients (and clients of other highly developed countries) in offshore locations, particularly India. Such arrangements are advantageous because of the availability of a skilled labor pool at a substantially lower cost than U.S. personnel, and the ability of the firms to operate nearly around the clock due to time differences between the U.S. and India. However, offshoring also creates substantial challenges in managing engagement teams comprised of individuals from culturally diverse backgrounds who rarely, if ever, communicate face to face. This paper identifies some of these challenges and their implications for the education of U.S.-based accountants.