Key Takeaways
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An environment characterized by uncertainty and rapid change is intensifying risks for professional service firms.
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Traditional risks, including high profile litigation and regulatory enforcement, continue to influence accountants’ liability.
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Identifying and understanding these challenges is key to developing a robust risk management strategy.
The following is adapted from the Overview of 2025 Accountants’ Liability Risk: Global Trends and Issues, which provides insights into global trends and risk issues facing the accounting industry. It is produced by the Risk Management Information team of the Professional Services Practice at Aon.
What does it mean to be an accounting firm in 2025?
On one level, the more things change, the more they stay the same – the auditors will examine financial statements, the consultants will produce reports. On another level, however, the way that firms are embracing technology has become transformational. And, at the same time, ambitious investment plans have led to an unprecedented influx of private equity investment.
These powerful trends make it difficult to predict how accounting firms will develop. The complex risk landscape they inhabit ensures that there will be continued risk arising both from traditional and developing sources.
Risk environment observations of note from the past year include:
Regulatory Activity – Regulatory enforcement produced record fines in some jurisdictions with regulators focusing on ethical lapses and audit quality. The link to firm culture is being examined. Large monetary penalties have raised questions over insurability of fines. The new administration in the U.S. may have different enforcement priorities.
Human Capital – Firms are adapting to a changing workforce with hiring strategies supported by technological advancements and existing staff are being given tools to develop greater technological literacy. Layoffs continued in 2024 with challenging economic conditions affecting demand for some consulting services. Firms are also contending with generational differences in the workplace.
Reputational Concerns – Increased governmental and regulatory interest in the accounting firms was one area of reputational concern in 2024. The rapidly changing ownership structures of accounting firms as well as issues around audit quality were also key concerns.
Litigation Developments – High profile matters involving accounting firms occurred in some jurisdictions where major litigation had not been previously noted or following a period of relative inactivity. Plaintiffs in key jurisdictions were increasingly looking to litigation funders. False Claims Act-related litigation was also of concern to consulting firms in the U.S.
Cybersecurity – Ransomware and phishing attacks continued to proliferate and some professional service firms faced data breach lawsuits. New state-level privacy laws were enacted in the U.S., but a comprehensive federal privacy law was still out of reach. The agreement to ease the transatlantic (EU to U.S.) flow of data was given a vote of confidence by the EU.
Geopolitical Developments – A challenging geopolitical landscape continued, with ongoing tensions and rising instability. The firms are adapting and displaying resilience in a messy risk landscape.
Disruptive Technologies – Rapidly evolving generative AI tools presented risks and opportunities. Firms have made significant investments in AI, are emphasizing greater AI and tech-literacy for recruits and staff and are partnering with big tech companies to leverage large language models, as firms enhance automation and augment their capabilities in audit and other areas. The firms have also displayed interest in other novel technology such as quantum computing.
There are many questions facing the profession in 2025. Some important ones are:
- Will the momentum of private equity investments continue?
- Will international regulatory enforcement produce more record fines?
- What will be on the agendas of regulators and governments, particularly the U.S.?
- How will AI tools and large language models such as ChatGPT change how people work, both within and outside of the profession?
Navigating this complex environment is demanding and Aon will continue to research, analyze, and summarize the issues for the benefit of the firms.
The Professional Services Practice at Aon values your feedback. To discuss any of the topics raised
in this article, please contact Audrey Jenner, Daniel Hacikyaner or Rona E. Davis.
This article is adapted from Facing Complexity, Uncertainty and Rapid Change: Accounting Firm Risks in 2025 (May 2025) from the Professional Services Practice at Aon.