INTHEBLACK June 2025 - Magazine - Page 37
Despite the buzz around
blockchain, AI is taking the
front seat when it comes to
transformative change in audit.
The pace of regulatory change
is no match for the speed
of technological advancement.
Sustainability reporting
and assurance requirements
will require rapid upskilling
across the profession.
The future
of audit
Auditors are preparing for the impact of agentic AI and ESG
reporting requirements — and these are just two forces of change
for the profession.
Words Susan Muldowney
IT HAS BEEN A TURBULENT TIME
for the audit profession. The introduction
of the International Standard on
Sustainability Assurance (ISSA) 5000,
General Requirements for Sustainability
Assurance Engagements in 2024 signalled
a leap forward for sustainability reporting
while stretching audit and assurance into
new territories. Advanced technologies like
artificial intelligence (AI) are raising the
bar on efficiency and effectiveness while
demanding rapid upskilling in a talent-short
market. Firms are updating their practices
and methodologies to keep up with rapidly
evolving demands.
How will the audit profession adapt to
change and what does the future hold? Here
are four transformative trends to look out for.
1. AI-POWERED INNOVATION
Technology is already enhancing audit quality
and efficiency, but the latest iteration of AI,
agentic AI, marks a huge shift in capabilities
by identifying patterns, anomalies and risks
to enable autonomous decision-making.
Christina Larkin, EY Oceania digital
assurance leader, says the current application
of technology is “light years away” from
where it was a decade ago. In 2017, EY
made what Larkin describes as “a couple
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