PODCAST: Why a bot takeover of auditing is unlikely

In this edition of Business Law Focus, host Evan Pickworth interviews PKF SA CEO and managing partner of PKF Octagon, Waldek Wasowicz, on whether a “bot” is likely to be doing your company’s annual audit any time soon.

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Hiring and retaining skilled accounting and internal audit talent count among the biggest hurdles challenging the advisory and audit industry today. As this plays out, the adoption of advanced technologies such as data analytics is being ramped up — but this is stopping well short of hiring “bots” to do the work of humans and fill the skills gap.

According to recent Caseware surveys, based on data derived from more than 6,000 accountants and auditors globally, more than 90% point to hiring and retaining skilled accountants and auditors as among the fastest-growing challenge facing accounting firms and internal audit departments today. Some are even turning away business due to a shortage of staff. When retaining talent, more than 85% of accountants and 90% of auditors said it is either somewhat or extremely difficult.

What is happening is that humans and AI are working in tandem to change the game in the auditing and advisory space, for instance in helping analyse more complete sets of data and highlighting where risk of material misstatement is greatest.

So AI is helping provide better audit and advice. At the end of the day, a shakeup is good for an industry placed under threat recently, with some bigger auditing companies globally coming under fire. In this new audit era trust will be paramount.

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