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Hiring timelines stretch as firms struggle to vet candidates
A new Robert Half survey reveals that hiring has become dramatically more time-consuming, with 93% of hiring managers reporting that the process takes longer now than it did two years ago. The survey of over 2,200 US hiring managers identified the biggest bottlenecks as evaluating candidate applications (51%), checking references and conducting background checks (47%), and scheduling interviews (43%).
The pressure to fill roles is also leading to poor decisions. Many have reported failing to properly assess technical skills (54%) and missing culture fit issues (46%). More than half of hiring managers also said that these hiring mistakes eventually led to additional team turnover by creating burnout and driving away existing staff who need to compensate for lost productivity.
For firms already stretched thin, the recommendation is to establish clear timelines upfront, leveraging contract professionals to bridge gaps during lengthy searches, and partnering with specialized staffing firms to access deeper talent pools.
New research shows auditors can prevent fraud through strategic signaling
New research from the University of Alabama, published in Contemporary Accounting Research, suggests auditors can deter financial fraud simply by signaling a more strategic audit approach.
The research identified three levels of strategic reasoning: zero-order (following standard procedures focused on efficiency), first-order (considering how managers might manipulate statements), and second-order (anticipating how managers might react to auditing strategies). When managers were informed that auditors use first- or second-order reasoning, they were less likely to commit fraud due to increased perceived risk of detection. This ultimately reduces the risk of fraud without increasing audit costs.
That said, managers who still chose to commit fraud put significantly more effort into hiding it in response to the heightened scrutiny. This suggests that while strategic signaling prevents most fraud, it may also make the remaining cases more sophisticated, potentially requiring auditors to approach their work with even sharper skepticism.
Private equity firms sitting on $1 trillion in unsold assets
Private equity firms are holding approximately $1 trillion in unsold assets—capital that would typically have been returned to investors under normal market conditions, according to PwC's midyear outlook. High interest rates, uncertain tariff policies, and geopolitical tensions have eroded company valuations, forcing firms to hold portfolio companies far longer than the traditional five-year timeline. Currently, PE firms have $3 trillion invested across 30,000 companies, with 30% held beyond typical exit windows.
The prolonged holding periods are straining relationships with limited partners, who expect regular returns on their investments. Deal activity has stalled, with only 4,535 transactions totaling $567 billion through May, largely flat compared to last year.
This represents a significant opportunity for accounting firms. Extended holding periods mean more complex valuations, longer audit relationships, and increased demand for advisory services as PE firms explore creative exit strategies, from partial divestitures to restructuring assets bought at peak prices.
