Audit Outsourcing: Why Sri Lanka Stands Out

According to CA Australia and New Zealand, the demand for External Auditors in Australia is on the rise, with 86% of employers reporting shortages in the profession. Furthermore, 72% of respondents expect demand for external auditors to grow over the next five years, underscoring the urgent need for skilled professionals.

With Australian accounting firms facing recruitment challenges, outsourcing to highly qualified professionals in Sri Lanka presents a strategic solution to bridge this gap efficiently and cost-effectively.

This article explores the key frameworks, expertise, and policies that make Sri Lanka an ideal audit outsourcing partner.

Educational Excellence and Professional Expertise

Sri Lanka produces a steady pipeline of finance professionals, supported by the highest literacy rate in South Asia (93.3%) and a high computer literacy rate (71%), ensuring a workforce well-equipped for modern auditing practices. Each year, over 85,000 finance and accounting graduates emerge from state and private universities, many offering specialized programs aligned with global standards.

Sri Lanka’s private universities are affiliated with prestigious Australian institutions, including Monash University, Deakin University, Edith Cowan University, Curtin University, Swinburne University of Technology, and Southern Cross University.

Sri Lanka’s finance professionals also benefit from internationally recognized qualifications that ensure seamless integration into the global financial industry:

• Chartered Institute of Management Accountants (CIMA) – A globally recognized qualification, with over 9,000 CGMA candidates completing CIMA’s CGMA Professional Qualification in Sri Lanka in 2023 alone.

• Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) – Sri Lanka’s premier accountancy body, with over 9,000 Chartered Accountants and 35,000 students. As a member of IFAC, IIRC, and a founding member of the South Asian Federation of Accountants, CA Sri Lanka upholds global accounting and auditing standards.

• Certified Practicing Accountant (CPA) Australia – A Mutual Recognition Agreement (MRA) with CA Sri Lanka and a Member Pathway Agreement (MPA) with CIMA Sri Lanka enables Sri Lankan professionals to obtain the CPA Australia qualification with ease.

As the first CPA Australia Recognized Employer Partner, H Connect International further strengthens this connection by providing professionals with structured career pathways and internationally benchmarked training.

Alignment with International Accounting Standards

Sri Lanka’s accounting standards (Sri Lanka Financial Reporting Standards) and LKAS (Sri Lankan Accounting Standards) are in line with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), ensuring consistency and comparability with Australian Accounting Standards (AASB).

This alignment allows for seamless collaboration between Sri Lankan outsourcing providers and Australian businesses, minimizing discrepancies and enhancing the quality of audit services.

Presence of Global Audit Firms

Sri Lanka’s strong audit infrastructure is backed by the Big Four—Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC) —which have shaped a highly skilled workforce and upheld global audit standards for decades.

At H Connect International, our audit team brings extensive Big Four experience while operating with efficiency and flexibility, free from bureaucratic constraints. We apply global best practices with a practical, results-driven approach, ensuring high-quality audits.

With expertise in ACNC-registered organizations, incorporated associations, grant recipients, and public benevolent institutions, we deliver accurate, compliant, and value-driven audit solutions tailored to Australian firms.

Cultural and Professional Synergy

40% of Sri Lanka’s services exports are to Australia. This is because of a combination of factors, including:

• Cultural Compatibility: Sri Lankans now represent the 11th-largest migrant community in Australia, demonstrating their adaptability to the country’s professional environment and work culture.  Beyond technical skills, Sri Lanka’s workforce is known for its friendliness, creativity, and adaptability, excelling in client-facing roles. This cultural alignment bridges the gap between Sri Lankan professionals and Western businesses, ensuring a deep understanding of client needs.

• English Proficiency and Neutral Accent: Sri Lanka has a large pool of English-speaking professionals, as English is widely spoken in major cities and is the primary language in the corporate sector. IELTS data indicates that Sri Lanka outperforms many other Asian countries in English proficiency, with Sri Lankan candidates consistently ranking among the top seven in Asia in the IELTS Academic exam. This strong command of English ensures clear communication and seamless collaboration.
  
• Global Recognition:

Sri Lanka has gained global recognition as a top outsourcing destination:

1. Delivery Destination of the Year (Global Sourcing Association)
2. Ranked 14th in the AT Kearney Global Services Location Index
3. Newest entrant to APAC’s Top 6 Primary Countries for Outsourcing, Shared Services, and Captives
4. 2nd in South Asia’s Global Innovation Index (WIPO)

• Global Brands Powered by Sri Lankan Talent and Technology

Many renowned global brands rely on Sri Lankan talent and technology for their operations, including American Express, Virgin Travels, HSBC, London Stock Exchange, Dell, and British Airways.

This highlights Sri Lanka’s expertise, adaptability, and ability to deliver world-class financial and technological solutions internationally.

Australian businesses that employ offshore staff have saved up to 83% in the long term (Australian Outsourcing Trend Report)

Outsourcing audit requirements offers a viable, cost-effective alternative to the challenges of sourcing and hiring onshore teams.

At H Connect International, we offer a range of outsourced audit services, including internal, external, compliance, and industry-specific audits, that ensure accuracy and efficiency.