How data and technology are reshaping the audit process

The audit landscape has changed dramatically in recent years, a direct response to evolving in technology and availability of digital records held by finance teams. For finance leaders, the shift isn’t just about compliance; it’s about unlocking efficiency, improving data integrity and ultimately creating a foundation for improved decision-making at speed and scale.

Technology and data sit at the heart of this transformation and its impact on clients is profound. From the rise of AI to simplifying standard manual processes, data and the use of technology will also bring huge benefits and opportunities to your audit process, saving your team time, building capacity for growth and bringing new insights.

One of the most significant changes is the move towards direct auditor access to financial systems. Where security protocols allow, auditors can now review transactions and supporting documentation without repeatedly requesting samples.

“This means less time spent responding to queries and more time focused on other strategic priorities", Mistry believes. "But the extent to which they realise this benefit depends on how well systems are used and the controls over these systems.”

Are you leveraging features like document uploads and in-system approvals? If not, you may be missing an opportunity to strengthen your control environment, increase the scalability of your finance team and streamline your next audit.

Data and cyber security have always been critical to businesses, but with GDPR and evolving information security requirements, the stakes are higher than ever when exchanging data securely as a team and with your auditor.

Modern audit platforms provide resilient and safe channels for transferring sensitive information, ensuring confidentiality and regulatory compliance. Mistry asks: “Have you reviewed how your data flows between systems and advisors? Understanding this architecture is key to avoiding delays and surprises.”

Beyond security, these platforms offer workflow visibility. As well as this, Mistry adds, “Finance teams can track what’s been delivered, what’s outstanding and where bottlenecks exist. This transparency reduces stress during audit season and helps teams prioritise effectively.”

Financial data analytics is more than just a concept; it’s here and being embraced by thousands of UK businesses to run their operations and provide strategic insight. Audit data analytics has also advanced, with the technology and data capabilities ever increasing. Mistry claims: “By analysing entire data sets rather than small samples, auditors can identify anomalies, trends and risks with greater precision.”

For clients, this means fewer requests for manual evidence and a more insightful audit process. However, analytics relies on robust IT controls and clean data, so when preparing for your next audit the veracity of your reporting should be the utmost priority.

Mistry offers sage advice: “Reflect on last year’s audit; were findings impacted by system weaknesses or data quality issues? Addressing these now will make your next audit smoother and more valuable.”

Automation has transformed routine processes, but it’s not a silver bullet. Highly subjective areas, such as complex accounting treatments or ethical considerations, still require human oversight. Mistry says: “The right balance comes from implementing clear governance and frameworks to understand where automation is right for your business.”

This means automate where exceptions are rare, the process is consistent and requires little judgement or estimate. “We always recommend maintaining a rigorous testing and monitoring control environment on our automated processes,” adds Mistry.

Ask yourself if you have defined which processes can be automated safely. Does your finance team have the right controls to oversee these systems? Automation without oversight can create risk rather than reduce it.

Just like many other aspects of business, artificial intelligence is set to redefine audits. Expect more sophisticated trend analysis, anomaly detection and predictive insights. But AI is only as good as the data it analyses. If data architecture isn’t robust, outputs will be unreliable.That can significantly undermine confidence in your financial reporting.

Mistry is clear: “Now is the time to consider if your systems are ready for this shift. How will your team adapt as your finance team relies on AI and agents to support its workflows, and your auditors move from transaction testing to auditing analytical outputs?”

Regulators, such as the Financial Reporting Council (FRC), are already issuing guidance on AI use in audits, focusing on documentation and governance. As these technologies evolve, so will expectations around control environments.

The transformation of data in auditing is an opportunity and not just a compliance exercise. To prepare, consider these questions:

• Do you understand your data architecture and how information flows across your systems?
• Have you reflected on last year’s audit process? What were the system environment and findings?
• How can you implement those findings practically to strengthen controls and improve efficiency?
• What role does your finance team play in maintaining data integrity and supporting automation?

If these questions raise any concerns, now is the time to act. Our team can help you review your systems, assess your control environment and explore practical steps to embrace technology confidently. Get in touch for a complimentary conversation.