33:54 Lena: So we've painted a pretty grim picture of external auditing as a career choice, but I want to explore what people are actually doing instead. Because clearly, talented people aren't just sitting around unemployed—they're finding better alternatives.
34:10 Miles: That's such an important perspective. The exodus from external audit isn't happening in a vacuum. These people are moving to roles that offer better compensation, work-life balance, and career satisfaction. And understanding those alternatives helps explain why external audit is struggling to compete for talent.
34:28 Lena: Corporate finance seems to be a big winner. Internal audit, financial analysis, corporate accounting—these roles often pay as much or more than external audit, but with much more predictable hours and less regulatory liability.
34:41 Miles: And the career progression in corporate roles is often clearer and faster. Instead of waiting 12-15 years for a partnership opportunity that may never come, you can move up to senior analyst, manager, director, or even CFO roles on a more predictable timeline.
34:56 Lena: The consulting world is attracting a lot of former auditors too. Management consulting, technology consulting, even specialized areas like ESG consulting offer the intellectual challenge that many auditors enjoyed, but with better compensation and more varied work.
35:13 Miles: What's interesting about consulting is that it values many of the same skills that make good auditors—analytical thinking, attention to detail, client management—but applies them in a more strategic, forward-looking context rather than the compliance-focused world of auditing.
35:29 Lena: Technology companies are another major destination. With the increasing digitization of finance and accounting, companies need people who understand both the technical and business sides of financial systems. Former auditors are well-positioned for these roles.
35:43 Miles: And the startup world offers something that external audit can't—the opportunity to build something from scratch and potentially share in the upside if the company succeeds. The risk-reward profile is completely different from the audit world.
35:56 Lena: I've also noticed more people starting their own practices—not audit firms, but advisory, consulting, or specialized service businesses. The barriers to entry are lower than they used to be, especially with technology tools that make it easier to run a small business.
36:12 Miles: The gig economy has opened up possibilities too. Fractional CFO roles, project-based consulting, interim management positions—there are ways to use audit skills in more flexible, higher-compensated arrangements.
36:25 Lena: Government and non-profit roles are attracting people too, especially those who are motivated by mission-driven work. These roles often offer better work-life balance and job security, even if the compensation isn't as high.
36:37 Miles: What's really telling is that many of these alternative paths offer what external audit used to provide but no longer does—intellectual challenge, professional respect, reasonable compensation, and sustainable work practices.
36:51 Lena: The financial services industry has been a major beneficiary of the audit talent exodus. Banks, investment firms, and insurance companies need people with strong analytical and risk assessment skills, and they're willing to pay competitive salaries for that expertise.
37:06 Miles: And here's what's particularly damaging for the audit profession—many of these alternative careers offer better long-term prospects. Instead of hoping to make partner someday, people can build diverse skill sets and move between industries and roles throughout their careers.
37:22 Lena: The remote work revolution has been huge too. Many of these alternative roles offer full remote or hybrid work options, which is something that external audit has been slow to embrace due to client service requirements.
37:33 Miles: Education is another path that's gaining traction. With the shortage of accounting faculty, universities are offering competitive packages to attract practitioners with real-world experience. Teaching offers intellectual stimulation, reasonable hours, and job security.
37:48 Lena: What's really interesting is that many people who leave external audit report being much happier in their new roles, even if they're not making significantly more money. That suggests the problem isn't just about compensation—it's about overall job satisfaction and quality of life.
38:06 Miles: And the network effects are powerful. As more talented people leave external audit for other careers, they create pathways for their former colleagues to follow. So the talent drain becomes self-reinforcing.
38:19 Lena: The regulatory and compliance field has grown enormously too. Companies need people who understand complex regulatory requirements, and former auditors have exactly the right background for these roles.
38:31 Miles: What's particularly striking is that many of these alternative careers offer the opportunity to specialize deeply in areas that interest you, rather than being a generalist who has to know a little bit about everything. That specialization often leads to higher compensation and greater job satisfaction.
38:47 Lena: So when we look at all these alternatives, it becomes clear why external audit is struggling. It's not just that audit has gotten worse—it's that everything else has gotten better relative to audit.
1:38 Miles: Exactly. The opportunity cost of staying in external audit keeps increasing, and firms haven't adapted their value proposition to compete with these alternatives. They're still operating as if it's 1995 and audit is one of the few prestigious career options available to accounting graduates.