Technologies such as GenAI, machine learning and blockchain are shaking up business models and bringing rapid change to the audit profession. Sophisticated data analytics enable auditors to analyse and interpret huge amounts of data in a matter of seconds, driving new efficiencies, enhancing productivity and creating potential to improve audit quality.

However, the huge promise of advanced technology must be balanced with a clear awareness of risks. Automation bias, for example, has already been highlighted by standard setters and regulators as a genuine concern when relying too heavily on technology.

How can audit practitioners embrace the potential of technology trends while keeping essential human qualities like professional scepticism, judgement and ethics at the forefront?

The Audit and technology playbook: a practitioner’s guide, produced by CA ANZ and the Association of Chartered Certified Accountants (ACCA), aims to help practitioners achieve this balance.

With insights drawn from a series of roundtable discussions held by CA ANZ, ACCA and members across several markets, along with extensive research into the key trends influencing audit technology, the playbook explores the most impactful technological trends shaping the audit profession today. It also provides a roadmap to help small- and medium-sized practices (SMPs) develop the digital skills and strategies to succeed.

Here are five considerations for your practice.

1. Develop your technology strategy and infrastructure

New technologies present huge potential for audit practitioners, but where should you start? What should you prioritise? Where should you invest?

A technology roadmap can help to steer you in the right direction. It should include details including a reasonable timeline that sets goals, assigns responsibilities and determines key milestones, project phases and desired outcomes.

“[Smaller practices] may not always have the technical knowledge or in-house expertise to make these kinds of informed decisions,” says Masood Mehmood FCA, senior policy advocate – Reporting and Assurance – at CA ANZ. “Before investing in digital solutions and change programs, firms should first assess their own size, strengths and budget based on their technology and automation needs.”

Shane O’Connor, global leader of Artificial Intelligence, Audit, at KPMG, was a member of the roundtable discussions and notes that KPMG undertakes rigorous testing in place as part of its broader technology strategy.

“We have a process in place whereby tools and software must be thoroughly reviewed, accredited and signed off,” he says. “It takes time to build out a solution initially, but everything we use must be approved to ensure its reliability. We thoroughly test the logic and output to make sure there is clear guidance and a sound methodology.”

2. Develop a change-management program

Mehmood notes that gaining support for change and overcoming opposition requires buy-in from the top.

Wider employee engagement, beyond the technology team, is crucial for transformation success, ensuring staff are involved in key decision-making.

“You just can’t lift and shift,” he says. “You need to have a proper plan, and firms should align their technology strategy with their culture and involve employees about key decisions.”

Mehmood adds that a technology strategy and change-management program should also include the impact on a firm’s system of quality management (SOQM). He notes that the International Standard on Quality Management (ISQM) 1 addresses firms’ responsibilities for designing, implementing and operating a system of quality management for audits, reviews of financial statements or other assurance or related service engagements.

3. Invest in continuing professional development

With the first two steps in place, your next move is to ensure that all your employees have a clear pathway to proficiency.

“This includes implementing ongoing training and a personal development program,” says Mehmood.

The playbook suggests making training and development programs available for all staff at all levels, with experienced staff empowered to train and mentor new employees. Practitioners are also advised to check CA ANZ CPD resources for updated qualifications and certificates relevant to their firm.

4. Focus on your talent pipeline

As your firm’s use of technology grows, your need for new skills and roles will also evolve.

“There will be a wider diversity in hiring beyond accountants and auditors,” says Mehmood. “For example, some firms are recruiting data scientists.”

Technology is emerging as a competitive advantage in attracting and retaining talent. For example, results of a recent ACCA and CA ANZ thought leadership report on talent attraction and retention found 92% of potential entrants to the audit profession prioritise employers’ investment in and use of advanced technologies. A further 87% of current and past audit professionals share this view.

A participant in the roundtable discussions that helped inform the playbook, Dato’ Lock Peng Kuan, managing partner, Baker Tilly Malaysia, notes the important role of technology in attracting and retaining talent.

“As stakeholders of the profession, we must work together to attract the next generation of auditors,” he says. “If we fail to adopt these important technological advancements, in five to 10 years we may find that no one is interested in entering the profession. Embracing technology not only enhances the efficiency and appeal of auditing but also ensures that we remain competitive in drawing top talent to the profession.”

5. Set guidelines and governance standards

While advanced technology presents huge potential benefits, it raises significant ethical issues in areas spanning fairness, bias in algorithms, lack of transparency and accountability deficits.

“You’ll need to implement robust guidelines and guardrails to ensure ethical use of technology and to maintain professional integrity,” says Mehmood. “These should be clearly understood by all staff.”

International standard setters, including the IAASB, the International Federation of Accountants (IFAC) and the International Ethics Standards Board for Accountants (IESBA), have developed frameworks to ensure technology-assisted audit judgements are fair, unbiased and compliant ethically. These frameworks help integrate new technologies while upholding the highest levels of audit integrity and professionalism.