Advanced technology in auditing increasingly mature – survey

The adoption of precocious technologies successful auditing has evolved from tentative experimentation to progressively mature stage, according to BDO’s recently released 2nd yearly Audit Innovation Survey.

The survey indicates that arsenic technological tools go regular successful audit work, the expertise of auditors successful interpreting information and exercising nonrecreational judgement is becoming progressively critical.

According to the survey’s findings, concern leaders are leveraging AI crossed assorted audit activities, including information absorption (61%), hazard detection and absorption (54%), automating information introduction (50%), detecting fraud (45%), and conducting predictive analytics (43%).

This year, 63% of concern leaders said they spot exertion arsenic making audit processes much businesslike and collaborative, an summation from past year.

There is besides greater parity betwixt lawsuit and auditor exertion capabilities: 93% of respondents said their auditors’ technological “sophistication” matches their ain systems, a emergence from 89% the twelvemonth before.

Furthermore, 85% consciousness their auditors’ technological abilities conscionable oregon surpass expectations—an summation from past year's 77%.

Trust successful audit firms utilising precocious technologies has besides climbed, with 81% of concern leaders expressing greater assurance than before—an summation of 18% compared to past year.

The willingness to put successful technology-driven audits remains strong; 97% indicated they are prepared to wage much for specified services. Additionally, the stock of concern leaders who judge exertion leads to audit outgo reductions grew from 29% past twelvemonth to 46% this year.

Nevertheless, portion reliance connected precocious technologies increases, concerns astir information governance are growing.

Only 46% present see their information governance practices to beryllium “mature”, down from 55% a twelvemonth ago.

Although astir concern teams person implemented oregon soon program to instrumentality AI solutions, lone 43% study having a ceremonial governance model for AI successful place.

Concerns stay precocious astir issues specified arsenic cybersecurity risks (82%), information privateness (80%), and the imaginable for inaccuracies caused by AI (71%).

Regulatory uncertainty is different country of worry, with 74% citing risks associated with a deficiency of wide guidance connected AI usage successful audits.

BDO Digital Transformation and Innovation Assurance managing main Brian Miller said: “

Audit exertion has reached an inflection point. Finance leaders nary longer inquire if their auditor uses precocious exertion — they expect it. But portion exertion is an enabler of today’s audit, radical stay the astir captious factor.