Talking about technology in auditing, in 2024, CAANZ and ACCA published the Audit and Technology Playbook, a guide to the technological trends reshaping the audit profession. It’s an exciting time for auditors, as tools like generative AI (GenAI), machine learning (ML), and blockchain are becoming integral to how we assess data, detect fraud, and deliver insights. While technology is driving incredible change, the playbook emphasises one important point: auditors still hold the reins. Human judgment, professional scepticism, and ethical responsibility remain at the heart of effective auditing.
Let’s dive into the transformative trends, the benefits for small and medium practices, and how firms can prepare for the future.
Audit Technology Trends Shaping the Business Landscape
Emerging technologies aren’t just buzzwords—they’re tools that auditors are already leveraging to make a real difference in their work:
- Generative AI and Machine Learning (ML)
These tools give auditors the ability to analyse massive datasets quickly, spotting risks or irregularities that might otherwise take hours or even days to uncover. Think of it as having an ultra-intelligent assistant that flags potential issues so you can focus on interpreting and solving them. For example, ML tools like Mindbridge can detect anomalies in financial transactions that might indicate fraud, providing real-time alerts during the audit process. - Blockchain
Once associated only with cryptocurrency, blockchain technology has found its way into audits, providing a secure and transparent ledger. Auditors can validate transactions with unprecedented accuracy and efficiency, reducing the time spent reconciling records. For example, EY’s Blockchain Analyzer allows auditors to gather an organization’s entire transaction data from multiple blockchain ledgers, facilitating the analysis and reconciliation of blockchain data for audit purposes. - Cybersecurity
In today’s digital age, protecting sensitive client data is critical. Auditors must understand cybersecurity measures not only to ensure compliance but also to assess risks related to breaches. A client with weak cybersecurity protocols is a liability, and auditors are now expected to identify such risks and provide guidance. - IoT Data
The Internet of Things (IoT) is another game-changer. Devices that collect real-time data—from sensors monitoring energy usage to smart inventory systems—expand the scope of audits. However, these also demand that auditors develop expertise in assessing data quality and ensuring system security.
These technologies are redefining how audits are conducted, improving efficiency and accuracy, but they also bring challenges. Firms must ensure their teams are equipped to harness these tools effectively.
How Small and Medium Audit Practices Benefit
While larger firms may dominate headlines with cutting-edge innovations, small and medium-sized practices (SMPs) have plenty to gain from affordable, off-the-shelf technologies. Here’s how SMPs can level the playing field:
- Audit Software
Managing multiple clients is no small feat. Technology-enabled tools help standardize procedures, minimizing errors and freeing up time for more strategic tasks. For example, optical character recognition (OCR) can quickly digitize stacks of receipts into searchable data, making it easier to identify trends and flag irregularities. - Data Analytics Tools
AI-powered platforms like CaseWare IDEA or Alteryx allow SMPs to dig deeper into data. Imagine analysing a client’s financial transactions over the past three years and discovering patterns that could predict cash flow challenges. These insights not only improve audit quality but also add value to clients, strengthening relationships. - Generative AI
Tools like ChatGPT are revolutionizing workflows. They can draft regulatory summaries, generate initial audit reports, or even assist in researching industry trends. For example, an auditor working on compliance might ask GenAI to summarize updates to local tax laws, saving hours of manual effort. Of course, all content created through these platforms still needs to be reviewed and checked for accuracy and relevance. - Cloud Computing
Cloud platforms like Microsoft Azure, Oracle Cloud and Google Workspace enable seamless collaboration, especially with remote teams or international clients. Imagine auditing a multinational client and needing real-time access to their financial data—cloud platforms make it possible to share updates instantly, reducing delays and ensuring transparency.
These tools don’t just improve efficiency; they enhance the quality of audits and make the profession more accessible for smaller firms.
We Can’t Ignore the Essential Role of Humans in Audit
As exciting as these technological advancements are, they don’t replace the human element in auditing. Automation can handle repetitive tasks and flag anomalies, but auditors bring context, judgment, and ethical reasoning to the table. Professional scepticism—questioning the data, interpreting results, and understanding the broader business context—is something no machine can replicate.
Antonis Diolas, Head of Audit and Assurance at ACCA, emphasizes this point: “Automation can reduce errors and spot patterns, but it doesn’t obviate the need for auditors to understand nuance, maintain professional scepticism, and exercise professional judgment.”
Technology is a tool, not a substitute, and striking this balance is essential.
We Can’t Ignore the Essential Role of Humans in Audit
To stay competitive and future-ready, firms must embrace digital transformation strategically. Here’s how, with actionable steps for each consideration:
- Develop a Technology Strategy and Infrastructure
A successful strategy starts with aligning technology investments to your firm’s goals.
Action: Assign a “tech champion” to evaluate tools like Mindbridge for anomaly detection or CaseWare for workflow automation. This person can ensure new technologies are scalable and meet client needs. - Develop a Change Management Program
Introducing new tools is as much about people as it is about technology. Resistance to change can derail even the best initiatives.
Action: Host quarterly workshops to demonstrate the benefits of new tools and address concerns. Share success stories from within your team to foster enthusiasm. - Invest in Continuous Skills Development
Technology evolves quickly, and staying up-to-date is critical.
Action: Create a “Tech Hour” every week where staff practice using analytics tools or AI platforms. Pair this with real-world case studies to make training relevant and engaging. - Focus on Your Talent Pipeline
The next generation of auditors will need a mix of technical and traditional skills.
Action: Partner with local universities or colleges to offer tech-focused internships, showcasing your firm as a forward-thinking employer. - Set Guidelines and Governance Standards
With great power comes great responsibility. AI and ML tools must be used ethically and transparently.
Action: Form an internal committee to review and approve technology usage, ensuring compliance with frameworks like Australia’s AI Ethics Principles
Conclusion
Technology is transforming audits, from how data is analysed to how teams collaborate. But while these tools enhance efficiency and insight, they are not replacements for the human qualities that define great auditors: judgment, scepticism, and ethical integrity.
As Amir Ghandar, Reporting and Assurance Leader at CAANZ, puts it: “While technology is opening up new ways of doing things in audit, we need to remain vigilant about the risks associated with rapid change, making sure we fully understand the technology, its limitations, and its potential.”
The future of auditing is hybrid, where digital tools amplify the auditor’s role rather than diminish it. By embracing continuous learning, strategic planning, and ethical governance, firms can position themselves to thrive in a tech-driven world while preserving the trust and integrity that underpin the profession.
National Audits Group
In today’s evolving digital and regulatory environment, firms that include audit services as a non-core service offering risk falling behind in efficiency, compliance, and the ability to deliver strategic insights.
At National Audits Group, we leverage advanced technology and digital tools to streamline the audit process, delivering not only accuracy and compliance but also real strategic value to client firms. Partnering with a specialist audit firm like National Audits Group, ensures your business stays ahead of the curve, allowing you to focus on core services while benefitting from expert audit solutions that drive innovation and growth.
Contact us to discuss how the we can help your firm or audit clients.
Steven Watson, Managing Director, National Audits Group
Further Reading:
Ready for New Australian Sustainability Reporting Standards (ASRS)?
ASIC’s 2025 Crackdown on Audit Quality and Independence Issues
Preparing for Your First Financial Statement Audit – National Audits Group
References:
- Audit and Technology playbook: A practitioner’s guide:
https://www.accaglobal.com/gb/en/professional-insights/technology/audit-technology-playbook.html - Australia’s AI Ethics Principles (Dept Industry Science and Resources)
https://www.industry.gov.au/publications/australias-artificial-intelligence-ethics-principles/australias-ai-ethics-principles
