How Chicago auditions could affect you
A large swath of the U.S. workforce is likely to be rehired at a higher rate, and more auditions will be required to get the job, a growing number of companies are finding.
The result could be a dramatic jump in hiring and a greater number of applicants for the next round of auditions.
And auditions can be very costly.
In the last few years, a number of big employers, including Starbucks, Macy’s and General Motors, have required more auditors for the hiring process, and some of those companies are asking for an extra $200 to $500 per candidate for the first round of testing.
Some companies also are asking that the company hire a team of at least two auditors, which is a step up from the one or two auditions typically given.
Audition xxxxxxx, which means it has a score of more than 4.0 out of 5, will be mandatory for most hires starting at the end of June, and it will also be required for those hiring for the third round of tests starting at March.
That means companies that hire an auditor for the fourth round of test hiring will have to hire at least three additional people for the job.
The new rules, first reported by the New York Times, are part of a broader push to cut costs.
Auditions for government positions and jobs at tech companies have been a popular target for the outsourcing industry.
But auditing is also seen as a way to gain a better understanding of a company’s business and performance, especially for companies that are more risk averse, said Paul J. DeGiacomo, the chief executive of The Audit Group, a non-profit that tracks the financial industry.
And the new rules come amid a growing trend of companies hiring outside auditors.
Some firms are asking auditors to help with cost-benefit analysis, while others are asking to audit their own operations and systems.
“They are not looking to hire a bunch of people, but rather to get an accurate picture of their business and how it operates,” Mr. De Giacomo said.
“They’re not looking for a new auditor.
They’re looking to get a better idea of what their business is doing.”
Auditors and auditing companies also can get into disputes.
Auditing firms that are hired by the government or big companies can sue over what they say is a poor performance of their services.
If auditors are hired in the past, companies that require them for their own audits can often find they are not needed, Mr. Joffe said.
But for other types of work, such as customer service or technology, auditors can be needed for specific work.
“Auditors are often needed to conduct investigations of fraud, for example, or to identify the source of a product or service,” he said.
A lot of auditing firms say they are willing to take on more auditing.
Auditors at other companies that audited companies like Tesla are asking the government to pay more than $20,000 to their own company to have them do the work.
The Auditing Industry Association, an industry trade group, said the new requirements are a good step toward reducing costs and creating more accountability.
The rule, which was adopted by the Securities and Exchange Commission last week, says auditors “must be authorized to perform the work and not be paid for it.”
Write to Rebecca Woolley at Rebecca.