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- For years, India has handled the Big 4’s audit support work.
- Now? Some Big 4s offshore teams are handling audit work requiring ‘professional judgement’ too.
- And that has caught the attention of the Financial Reporting Council (FRC), the UK audit regulator.
UK Audit regulator investigates Big 4
On July 22, the Financial Reporting Council (FRC) released its Annual Review of Audit Quality 2026 report.
Simply put, this report assesses how the audit firms in the UK, including KPMG, PwC, EY, and Deloitte, have been performing on the audit quality front.
One trend stood out.
The regulator found that the Big 4 are increasingly relying on offshore delivery teams through what they call extended team models….including complex audit work requiring professional judgement.
KPMG UK shows how big this model has become
While the FRC did not call out any firm, KPMG UK’s growing reliance on its offshore audit workforce has suddenly taken centre stage.
A significant portion of KPMG UK is supported through KPMG Global Services (KGS) in India.
FYI: KPMG doubled down on India in 2025. KPMG UK and KPMG US acquired full ownership of KGS in a $210 million deal.
Today, around 25% of KPMG UK’s audit professionals sit offshore.
- KPMG UK-based audit professionals: 5,491
- KPMG UK Offshore audit professionals: 1,847
One employee from KPMG KGS (On the condition of anonymity) told The Finance Story:
“It’s not just KPMG UK….Other independent member firms across Europe are heavily offshoring tax, consulting, and audit work to India.
And yes, audit accounting for the largest share of the pie!
The reason? KPMG UK wants to cut costs.
So, they are laying people off and sending excess work to their India offshore team to utilise its lower labour costs.
This has resulted in increased regulatory scrutiny.”
Also read: No mass layoffs at India’s Offshore CPA hubs…But no more “Lollipop Titles”
The debate…
Can professional judgement really be offshored?
One UK auditor on LinkedIn criticised:
“Many of these offshore teams are not trained on professional judgment but on cookie-cutter and scripted testing.”
His argument? Audit quality depends heavily on professional scepticism.
And professional scepticism comes from experience, industry knowledge and challenging assumptions….Not just completing procedures.
Another Auditor empathized:
“For CFOs and audit committees, the real question is whether governance, supervision, data security and quality controls remain equally strong regardless of where the work is performed.”
So is it the end of offshore audit work?
Good news: offshoring to India is not going away.
The FRC itself observed that:
- Rapid technological change
- Sustainability assurance
- Evolving professional standards and regulations,
- Cost pressures
….are forcing more firms to look at the offshore model.
However, the regulator will be watching these firms very closely over the next year to make sure:
- Audit quality does not suffer
- Firms build an integrated, capable team: The FRC suggests hiring auditors (be it onshore or offshore) who are sceptical, curious and technically proficient.
- Foster a “one team” culture: The FRC found that firms that treat their “extended teams” as local employees
Also read: KPMG US & UK acquire 33% stake in KPMG Global Services (KGS) for $210Mn!
What does this mean for Indian audit professionals?
India’s role in global audits is getting bigger, and professionals here could get exposure to:
- Complex audits
- Global clients
- Judgement-heavy areas previously handled only by onshore teams
But the expectations will also rise.
Indian audit professionals will need to demonstrate more than technical capability. They will need:
- Professional scepticism
- Strong business understanding
- The ability to challenge assumptions
FAQs
Which Big 4 offshore hub employs the most people?
- EY Global Delivery Services (GDS) holds the top place by employing 60,000+ people in India.
- With Deloitte USI (50,000+) following closely,
- PwC Acceleration Centers (16,000+)
- KPMG Global Services (KGS) India (14,000+) also employ a significant amount of offshore talent.
Who owns KPMG KGS?
In April 2025, the US and UK acquired the remaining 33% stake previously held by KPMG India for $210 million, becoming its new owners.
What do Big 4 offshore hubs look for in talent in 2026?
Offshore firms in India from US CPAs and UK Accounting firms are no longer recruiting mindlessly. They want professionals with client-facing skills and AI expertise.
The following roles are in demand right now:
- Strong technical accountants
- Tax specialists
- Advisory talent
- FP&A professionals
- Data and tech talent
