The world of auditing is undergoing a seismic transformation spurred by developing technologies, rapidly evolving business environments and shifting expectations. That’s what makes a closer look into the implications of governance, risk and security for auditors necessary, while advancing technologies create opportunities to aid the day-to-day work of the key profession.
As Marc Jeschonneck, global assurance digital leader at EY, puts it, “The rapidly changing ecosystem – from geopolitical risks to transforming business models – is at the heart of what auditors face today”. This influences auditors’ move to adapt to environments shaped by volatile global events and swift business transformations. Identifying and addressing key risks in the field is becoming crucial, as is aligning auditing practices with new business models.
Adding to this complexity are changing expectations from clients and professionals alike. Jeschonneck emphasizes the dual pressures: “Clients expect auditors to not only reduce the burden of routine tasks but also steer them through transformations.” Similarly, younger professionals, particularly Gen Z, demand a modernized approach that leverages advanced tools and aligns with their digital-first mindset.
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Technology as a catalyst
The adoption of advanced technologies in auditing is progressively transforming the way auditors operate. As noted by Paul Goodhew, global assurance innovation and emerging technology leader at EY, his organization is currently “undergoing a $1bn transformation in technology for our people and clients”. Technologies like AI, blockchain and advanced data analytics are reshaping the profession, enabling auditors to better understand client risks, optimize processes and provide insights with unprecedented speed and accuracy.
Unsurprisingly, generative AI has emerged as a key priority in the field as Jeschonneck explains, “While many clients are still at the early stages of adopting AI, its potential in forecasting, transaction matching and document intelligence is undeniable”. For auditors, AI presents an opportunity to enhance the accuracy of financial reporting and streamline processes, freeing up professionals to focus on higher-value tasks.
Another technology once seen as a disruptor, blockchain, has now found its niche in auditing digital assets. “We need to understand and audit digital assets as part of our procedures,” says Goodhew, with EY’s blockchain analyzer becoming an example of how auditors are leveraging technology to manage emerging risks and opportunities.
Risks in emerging technologies
While advanced technologies offer various new opportunities, they also bring risks that auditors must stay alert for. From cybersecurity threats to AI-generated errors, the stakes are high. Discussing this, Goodhew highlights the importance of governance frameworks, noting, “AI’s risks – such as explainability, hallucinations and regulatory compliance – must be managed carefully”.
In a bid to address these challenges, EY has developed the Assurance AI Framework, which incorporates principles of responsible AI to guide auditors in identifying and mitigating risks. As Jeschonneck points out, “We spotted the need for auditors to have a pragmatic yet comprehensive framework to address emerging risks”.
Moreover, auditors must keep pace with global regulatory requirements, such as the EU AI Act, which demands robust compliance measures. By integrating technology risk management into their workflows, auditors can proactively address potential vulnerabilities while maintaining trust with clients and stakeholders.
Tools and training for the future
Technology integration in auditing is supported by robust tools and training programs. For example, EY’s Canvas and Helix platforms provide auditors with advanced workflows and data analytics capabilities. Goodhew shares an example: “Canvas AI compares risks across engagements and uses external data to recommend adjustments to audit strategies.” Such tools empower auditors to make data-driven decisions, enhancing efficiency and accuracy.
To prepare auditors for emerging technologies, EY involves professionals in the development and testing of new tools. “We’ve engaged 10,000 auditors in testing technology,” says Jeschonneck. Programs like digital badges and specialized networks further equip auditors with the skills they need to thrive in a tech-driven environment.
Another standout initiative is EYQ Assurance Knowledge, a generative AI-powered tool that integrates with EY’s knowledge base, which Goodhew explains “enables auditors to quickly access relevant methodology and standards, saving time and ensuring accuracy”.
Balancing opportunities and risks
The integration of advanced technologies into auditing is both a challenge and an opportunity. Cybersecurity, sustainability and cost optimization are key considerations as auditors navigate this new landscape. For this reason, Jeschonneck cautions that “Technology brings opportunities to optimize processes and meet client demands, but it also requires us to deeply understand and address emerging risks”.
For auditors, the future may lie in embracing these advancements while maintaining the principles of governance, risk management and security. By leveraging technology responsibly, auditors can not only meet the evolving needs of their clients but also contribute to a more resilient and transparent financial ecosystem.
Advanced technologies are transforming auditing, offering tools to address complex challenges and unlock new opportunities. With robust frameworks, continuous learning and a commitment to innovation, auditors are well-equipped to navigate the ever-changing landscape and build a sustainable future for the profession.
