The adoption of advanced technologies in auditing has evolved from tentative experimentation to increasingly mature stage, according to BDO’s newly released second annual Audit Innovation Survey. 

The survey indicates that as technological tools become routine in audit work, the expertise of auditors in interpreting data and exercising professional judgement is becoming increasingly critical. 

According to the survey’s findings, finance leaders are leveraging AI across various audit activities, including data management (61%), risk detection and management (54%), automating data entry (50%), detecting fraud (45%), and conducting predictive analytics (43%).  

This year, 63% of finance leaders said they see technology as making audit processes more efficient and collaborative, an increase from last year. 

There is also greater parity between client and auditor technology capabilities: 93% of respondents said their auditors’ technological “sophistication” matches their own systems, a rise from 89% the year before.  

Furthermore, 85% feel their auditors’ technological abilities meet or surpass expectations—an increase from last year’s 77%. 

Trust in audit firms utilising advanced technologies has also climbed, with 81% of finance leaders expressing greater confidence than before—an increase of 18% compared to last year.  

The willingness to invest in technology-driven audits remains strong; 97% indicated they are prepared to pay more for such services. Additionally, the share of finance leaders who believe technology leads to audit cost reductions grew from 29% last year to 46% this year. 

Nevertheless, while reliance on advanced technologies increases, concerns about data governance are growing. 

Only 46% now consider their data governance practices to be “mature”, down from 55% a year ago.  

Although most finance teams have implemented or soon plan to implement AI solutions, only 43% report having a formal governance framework for AI in place. 

 Concerns remain high around issues such as cybersecurity risks (82%), data privacy (80%), and the potential for inaccuracies caused by AI (71%). 

Regulatory uncertainty is another area of worry, with 74% citing risks associated with a lack of clear guidance on AI use in audits.  

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

Audit technology has reached an inflection point. Finance leaders no longer ask if their auditor uses advanced technology — they expect it. But while technology is an enabler of today’s audit, people remain the most critical factor.  
 

“Curious professionals who leverage innovative tools and thoughtfully interpret results are creating greater stakeholder value, with more transparency and accuracy, than ever before. The audit firms that are investing in their people, data and technology are defining the next era of audit quality. 

BDO’s latest survey notes that, despite improvements since last year, obstacles to fully leveraging advanced audit technologies remain.  

The findings point to an ongoing need for further investment in training and skills development within the accounting sector.