Auditor industry specialization in a MENA region country: lessons learnt from PricewaterhouseCoopers - Egypt

Abstract

Subject area

Auditing, accounting, finance, control.

Study level/applicability

Upper level undergraduate, MBA, MS accounting.

Case overview

This case takes an internal approach by exploring how PricewaterhouseCoopers - Egypt develops and applies industry specialization in an emerging market such as Egypt. The case focuses on three aspects of specialization. First, the strategic drivers behind specialization. Second, the internal processes of building industry-specific knowledge. Finally, the costs and benefits of specialization.

Expected learning outcomes

1. Industry specialization is a strategy:

   • Specialization is a strategy primarily used by Big 4 auditing firms, such as PwC-Egypt as a means of differentiating it self from the market.

2. Industry specialization is a culture:

   • For specialization to be fully effective a learning culture should be in place in which firm personnel are committed to continually seek new in-depth knowledge about clients and their industries.

3. Human resources are the most valuable asset of auditing firms:

   • Auditing is a service that involves extensive professional judgment. Thus, knowledge and expertise of its personnel is what differentiates one auditing firm's staff from another.

Supplementary materials

Teaching notes.

Citation

Abdel-Meguid, A.M. (2011), "Auditor industry specialization in a MENA region country: lessons learnt from PricewaterhouseCoopers - Egypt", , Vol. 1 No. 4. https://doi.org/10.1108/20450621111187335