The audit profession is undergoing a major shift as technology, automation, and ESG reshape the industry.
Continuous auditing, standardized digital tools, and evolving compliance requirements are transforming how auditors work. At the same time, new risks and complexities require professionals to adapt and expand their expertise.
The collaboration between financial auditors and technology specialists is shaping a new standard. These challenges and opportunities are at the center of our panel talk below. Further down, insights from Rob Fijneman explore how these trends impact auditors and the future of the profession.
Expert talk: Shedding light on the transformation of the auditor
In this video, former SRF host Karin Frei speaks with Prof. Dr. Leibfried, Dr. Christian Kehler, and Regula Tobler about the evolving role of auditors. This panel brings together perspectives from academia, human resources, and corporate auditing, providing a comprehensive view of the industry's transformation. In the next 20 minutes, they discuss:
- What are the biggest changes in the profession from then to now? #00:00:40#
- How have client expectations changed? #00:09:31#
- What fields are opening up in training? #00:10:13#
- How are technologies like AI and ML changing the audit? #00:13:36#
- Is auditing becoming too forensic with the rapid rise of technology? #00:15:23#
- How much creativity is there in auditing today? #00:17:16#
- What does the future of audit look like? #00:19:01#
How does technology impact the role of the auditor?
Technology is reshaping the auditor of the future by redefining the process and the necessary skill set. Digital trust is crucial in maintaining secure and transparent financial systems.
As digital tools and automation become more advanced, auditors must adapt to stay relevant in financial oversight. Traditional practices are evolving, requiring professionals to develop expertise in emerging technologies and data-driven insights.
Technology has transformed financial oversight. Continuous auditing and monitoring controls are now fundamental. The digital auditor must master reporting and data-driven insights to ensure accuracy and compliance. These skills are essential for maintaining high audit standards. When financial statements meet all required standards, auditors can support the issuance of an unqualified opinion.
Why is digital transformation crucial for auditors?
Technology has moved beyond a supporting role and is now central to audit digital processes. The digital transformation is shaping the future of auditors. This is especially true in industries like digital insurers and AI-driven healthcare. To stay relevant, auditors must expand their expertise in information security, continuous controls monitoring (CCM), and risk assessment.
The responsibilities of internal auditors and external auditors have broadened significantly. They now manage control processes, safeguard data integrity, and strengthen cyber resilience while ensuring regulatory compliance. Strong data governance can also help reduce the risk of a disclaimer of opinion. It ensures that auditors have access to reliable and complete information.
Artificial intelligence (AI) is revolutionizing financial statement analysis. AI-powered tools can analyze large datasets, detect material misstatements, and improve audit opinion accuracy. Meanwhile, audit management platforms enhance real-time monitoring. They help organizations reduce the risk of an adverse opinion and ensure compliance with generally accepted accounting principles (GAAP).
How has the audit profession evolved?
Over the past 50 years, the role of the financial auditor has changed significantly. Previously, the focus was on traditional financial reporting. However, as business models became more complex, IT auditing emerged as a key discipline.
By the late 20th century, researchers identified core technology competencies needed for financial audits. Universities incorporated digital auditing and data analytics into their curricula. Rob Fijneman highlights that this shift modernized compliance and corporate governance frameworks.
Today, the demand for internal and external auditors is growing. Organizations seek professionals skilled in audit management software, risk management, and compliance reporting. These professionals play a key role in ensuring transparency and adhering to international standards.
Key milestones in auditing
The past five decades have seen a shift from manual auditing processes to technology-driven assurance. IT auditors now focus on security controls, IT general controls (ITGCs), and compliance frameworks embedded within financial systems.
From 2015 onwards, advanced data analytics improved external audits, enabling real-time fraud detection and validation of financial reports. AI-powered platforms enhanced audit reporting, reducing errors and ensuring qualified opinions.
Since 2020, continuous monitoring has become standard. This allows auditors to detect risks before they escalate. It also helps auditors meet international standards. By 2023, digital auditors with expertise in audit management and algorithm-based risk assessment became essential.
This transformation aligns with the World Economic Forum’s Digital Trust vision, ensuring transparency and accountability in an increasingly automated world.
Is the audit profession fit for the future?
The profession is undergoing rapid change as technology, regulation, and new business risks reshape its role. Digital tools, AI-powered analytics, and real-time data tracking are transforming audit processes. These advancements help auditors detect risks earlier and enhance financial oversight. Despite these advancements, human expertise remains essential in assessing complex issues and ensuring transparency.
As organizations embrace continuous auditing, auditors must develop new skills to keep pace. ESG reporting is creating additional demands, requiring expertise in environmental and governance risk assessment. Social media plays a role in amplifying scrutiny of corporate disclosures. The profession is also facing increasing regulatory pressure, making compliance knowledge more critical than ever.
To remain competitive, auditors must adapt to evolving frameworks and digital solutions. Companies that fail to modernize risk falling behind in an increasingly data-driven environment. While automation enhances efficiency, the profession itself must evolve to maintain trust and relevance in corporate governance.
Auditors who combine technical expertise with critical thinking will continue to play a vital role. Their ability to interpret data, provide independent opinions, and navigate emerging risks ensures that audit remains a cornerstone of financial integrity.
Conclusion: The road ahead for auditors
Find further information
A data-driven audit is becoming the industry standard. However, success depends on skilled professionals who can integrate audit technology effectively.
KPMG is leading the transformation of the audit profession. Our teams help businesses implement integrated audit solutions that enhance value and compliance.
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