Graham Marjoribanks on how Johnston Carmichael became the top Scotland 500 auditor

That is the view of Graham Marjoribanks, head of audit at Johnston Carmichael, the most frequently appointed auditor across the Scotland 500 dataset, acting for 61 companies.

The firm’s position reflects decades of investment in local markets, with Graham pointing to long-term presence rather than short-term expansion as the key driver.

He says: “I think what you see is the result of investment over a long period of time. We’ve been planting seeds in communities for years and years, and you start to see that translate into growth.

“When you’ve been around for a long time, you get really plugged into those local markets. That’s what underpins where we are today.”

That embedded position, Graham maintains, is reinforced by the firm’s wider advisory model, where relationships are built across service lines before audit is introduced.

He explains: “It often feels like when a business comes out to tender, we already know them. That’s because relationships have been built over time across different parts of the firm, not just audit.”

While global firms offer scale, Graham says proximity remains a defining factor for many mid-market businesses. However, he argues proximity is not just geographical: “One definition is being physically present in local communities, but another is being on the same journey as your clients.

“Our clients are dealing with complex issues like artificial intelligence, governance and cyber risk, and we’re working through those in real time as well. That type of proximity really matters.”

That balance between local presence and broader capability varies by client.Graham observes: “There are businesses that really value having people on the ground and being invested in their local market. In places like Dundee, that can be critical. But others prioritise sector expertise or access to a wider network. It depends on what matters most to the business.”

Graham says the role of audit has shifted significantly, with businesses expecting more than technical delivery. “Your ability to deliver a compliant audit is table stakes. Businesses want more than that.

“They expect advisers to be up to speed on emerging issues and best practice, and to be proactive in how they advise.”

That broader role is closely linked to resilience, particularly in a more volatile operating environment.

“A lot of what we do is about helping businesses understand risk and improve resilience. That could be governance, succession planning or emerging risks like cyber or AI.”

Over time, those relationships evolve into deeper advisory roles. Graham comments: “You don’t earn the right to advise overnight. It comes from showing up consistently and demonstrating that you can add value to the leadership team.”

Sector expertise remains important, particularly in specialist areas such as food and drink, where understanding cost pressures and regulatory change is essential.

Graham says: “If you’re advising a food manufacturer, you need to understand things like commodity price volatility and how that impacts their business. Otherwise you won’t build credibility.”

However, he points out that traditional sector definitions are becoming less clear as technology reshapes industries. “You might look at a business and ask whether it’s agriculture or technology –increasingly, it’s both.

“That means you need to understand how sectors are evolving, but also recognise that many challenges are common across businesses of a similar size and stage.”

He adds that companies at similar scale often share more in common than those in the same sector but at very different stages of growth.

Despite a challenging environment, Graham maintains that Scottish business owners remain ambitious.

“There’s no doubt it’s a difficult landscape. Costs are rising, regulation is more complex and there are real pressures,” hesays. “But when youspeak to business owners, they still have big ambitions. They’re still looking for ways to invest, grow and find opportunities.”

That optimism, he says, is often driven by a recognition that disruption creates winners as well as losers.

“People understand the challenges, but they also see that there will be opportunities. There’s a mindset of ‘why can’t that be us?’”

However, translating profitability into scale remains a challenge for many businesses.

Graham believes this often comes down to people and leadership dynamics. “The skills that help someone build a successful business are not always the same as those needed to scale it. It can be difficult for founders to step back, bring in external support or change how the business operates, even when that’s what’s required for growth.”

Family businesses face similar challenges, particularly where different generations have different risk appetites.

“You might have one generation focused on protecting what’s been built, while the next wants to invest and scale. That tension can hold businesses back.”

Looking ahead, Graham expects a more challenging environment for both audit firms and their clients.

“The audit market is more challenging than it has been in recent years, partly reflecting broader economic conditions.

“But the bigger shift is in the mid-market. Rising costs and rapid technological change are going to create a divide between winners and losers.”

Those that succeed, he said, will combine strong fundamentals with the ability to adapt.

“It could be businesses with strong brands, strong balance sheets or innovative leadership teams that spot opportunities early.

“Our role is to help clients navigate that and make sure they’re on the right side of that divide.”

While scale and reach remain important, relationships, proximity and sector understanding continue to define how much of Scotland’s audit market operates.