When finance leaders go shopping for audit solutions, their preference for firms leaning into artificial intelligence (AI) and other advanced technologies is growing, right along with their trust.
Nearly all (97%) of leaders said they are willing to pay more to partner with audit firms that leverage advanced technologies, according to BDO’s Audit Innovation Survey.
The survey canvassed 210 senior finance leaders — predominantly CFOs and finance directors at public and private U.S. companies — and found that 81% have greater trust in audit firms that invest in and actively use advanced technology, an 18-percentage-point increase from the first survey a year ago.
“Audit technology has reached an inflection point,” Brian Miller, BDO assurance managing principal–Digital Transformation, said in a news release. “Finance leaders no longer ask if their auditor uses advanced technology — they expect it.”
Taking it a step further, 34% of respondents said that limited use of advanced technology would lead them to consider switching audit firms, second only to poor project and deliverable management (36%).
Audit firms, according to the survey, are mostly meeting expectations. Ninety-three percent of finance leaders said their audit firm’s technology is progressive, and 85% said their experience with audit technology met or exceeded expectations, up from 77% last year.
That’s not to say that increased reliance on AI and other advanced technologies is all smooth sailing. More than two-thirds of finance leaders expressed concerns about AI in audit in six areas: cybersecurity risks (82%), data privacy risks (80%), regulatory risks (74%), AI generating incorrect information that their company acts on (71%), overreliance on technology (71%), and AI bias (68%).
The volume of leaders gravitating to AI solutions while also expressing concern about potential overreliance on technology serves as a reminder of AI’s place — and the prominent place of people — in the audit equation.
“While technology is an enabler of today’s audit, people remain the most critical factor,” Miller said. “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.”
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— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.