The Debate on the Role of Auditors ď‚— In 1990s, the audit firms tended to become business consulting
firms which also did auditing. This shift in focus from auditing to consulting had a negative impact on the business of audit firms.
ď‚— As most of the audit firms were partnership firms, they lacked the
leadership necessary for coping with rapid growth. The partnership model did not suit the expanding consulting business model. It resulted in a lack of proper span of control as all partners had equal control over the firm. This in return resulted in lack of effective communication channels that led to huge gaps in communication between the partners working on various projects.