INTHEBLACK May 2026 - Magazine - Page 42
P O D C AS T
Trust and
technology
in audit
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“The capacity for [AI] to enhance quality risk detection
and regulatory oversight is real, but we also need to see
them as tools. They do not replace someone’s judgement;
they do not replace systems or governance.”
KATE O’ROURKE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION
Australian Securities and Investments
Commission (ASIC) commissioner Kate O’Rourke
says auditors are more important than ever,
but the complexity of their role is growing fast.
In this episode of the With Interest podcast,
she sets out what the profession needs to do
to meet the moment.
A COMPLEX LANDSCAPE
There are three forces reshaping the audit
and assurance landscape simultaneously,
O’Rourke says: technological change, structural
shifts in the economy and an evolving
regulatory environment. “I think together
they are really upping the complexity of
the landscape that we are all working in.”
1. TECHNOLOGY
On technology, O’Rourke’s message was
unambiguous. “It is AI, AI, AI … it is extraordinary,
the speed of change and what it has enabled,”
she says. “The capacity for these tools to
enhance quality risk detection and regulatory
oversight is real, but we also need to see them as
tools. They do not replace someone’s judgement;
they do not replace systems or governance.”
2. STRUCTURAL SHIFTS
O’Rourke notes that ASIC has been closely
monitoring two structural developments which
raise the stakes for auditors: the rapid growth
of private credit markets and the expansion
of Australia’s superannuation pool, now worth
42 INTHEBLACK May 2026
A$4 trillion. Both areas depend heavily on
the reliability of financial information — and,
by extension, on the quality of those who audit it.
3. THE REGULATORY ENVIRONMENT
Climate reporting looms large as the third major
force. O’Rourke describes the new sustainability
reporting regime as “a very significant change”
to the regulatory settings that apply to both
preparers and auditors.
ASIC has responded with a dedicated
regulatory guide (RG 280), an extensive FAQ
resource and a new series of educational
modules developed in partnership with
the Australian Accounting Standards Board,
the University of Technology Sydney and
educational design agency Studio 3 Learning.
ALL ABOUT TRUST
O’Rourke does not see the fundamental role
of auditors changing — only the circumstances
in which they perform it. “The importance of
the work of auditors has only increased,” she
says, returning repeatedly to a single keyword:
trust. “Accurate, accessible and reliable financial
and sustainability information … that is what
makes our businesses work well, commerce work
well and our markets work well.”
Despite the mounting pressure, O’Rourke’s
closing message is upbeat: “It is a wonderful,
interesting and exciting time to be working
in audit and assurance.”
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to this episode
