KTP & Company PLT

Auditors in Johor Bahru are leaving the industry at an alarming rate, and while many cite familiar reasons like Singapore dollar, regulatory pressure, demanding work environments, and career diversification.

There is a lesser-known factor that is contributing significantly to this trend : the quality of accounting personnel.

This issue, surprisingly, is not exclusive to small and medium practices (SMPs) serving SMEs, but it extends even to major firms like the Big 4 and Big 8.

The heart of the problem lies in the repeated mistakes made by accounting staff, which often go unnoticed or unaddressed.

Auditors frequently encounter accountants who lack a clear understanding of basic accounting concepts.

The result?

Simple errors, incorrect data entries, and financial statements riddled with inaccuracies.

These mistakes not only slow down the auditing process but also jeopardize the accuracy of the financial reports, creating more work and increasing pressure on auditors.

The frustration is compounded by the fact that auditors are spending a disproportionate amount of time fixing these issues, which ultimately affects their ability to focus on higher-value tasks.

In an environment where tight deadlines and high workloads are already challenging, adding this extra layer of difficulty is overwhelming.

It causes burnout and disillusionment among auditors who are often left to correct fundamental mistakes that should have been caught at the accountant level.

Interestingly, this issue isn’t confined to smaller firms or companies with limited resources.

Partners in top-tier firms like the Big 4 and Big 8 report similar challenges with accounting staff performance from Big 4 and Big 8 clients.

The problem seems to be systemic—accountants at all levels are struggling with the basics, and this lack of competence creates a ripple effect throughout the entire auditing process.

When the auditor cannot trust the work of accountants, it undermines their ability to provide reliable audits and drives many talented professionals out of the industry.

If this issue remains unaddressed, the exodus of auditors from Johor Bahru will only continue to grow.

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I’m Koh Teck Peng

Welcome to my blog, I’m the founder and principal of KTP & Company PLT. My journey in the accounting profession has been driven by a passion for numbers and a dedication to helping businesses succeed. With over 25 years of experience, I’ve had the privilege of working with a wide range of clients, from small startups to large corporations, providing them with the financial insight and strategic guidance they need to thrive.

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