The Pennsylvania Institute of Certified Public Accountants (PICPA) has published a report, “The Future of the Audit: Building Relevance and Sustaining Quality,” which delves into the impact of technological advancements on audit services.
This study highlights the critical role of technology in improving audit quality and the steps firms must take to address the demands for transparency and trust.
Findings from the report are based on contributions from 115 auditors across various sectors, including corporate finance and public accounting.
Insights from industry experts such as PCAOB board member Christina Ho, PwC US Assurance Leader Deanna Byrne, and PICPA Professional & Technical Standards VP Allison Henry, among others, provide an overview of the current audit landscape.
According to the survey, 90% of auditors believe that technology has enhanced audit quality over the past five years, with 56% expecting it to have a substantial impact in the near future.
The study also points to a broader scope of assurance, with 54% of the auditors viewing the verification of AI, ESG, and other non-financial metrics as increasingly important.
The report addresses the heightened cybersecurity risks that come with cloud and AI integration, advocating for “regulatory sandboxes” to enable firms, particularly small and midsize ones, to adopt new technologies safely.
It also highlights workforce challenges, pinpointing retention as a greater concern than recruitment, and recommends fostering flexible work environments, upskilling opportunities, and diversity to attract tech-savvy auditors.
Firms are advised to take immediate steps such as investing in scalable technology, enhancing skills through targeted training, forming educational partnerships, and actively participating in regulatory discussions.
In the long term, the report suggests a shift from periodic audits to ongoing, real-time assurance and capitalising on technology.
PICPA CEO Jennifer Cryder said: “Technology is rapidly redefining the audit process, and auditors, clients and regulators must align on what the future looks like.
“Firms that take deliberate, forward-looking action today will strengthen their relevance, enhance audit quality, and protect public trust for years to come.”
In May 2025, the PICPA’s “2025 Workforce Transformation and Talent Management Strategies” report, anticipates the phasing out of the traditional hierarchical model in accounting, attributing this change to technological progress and a shrinking talent pool.
“PICPA report discusses the impact of technology on audit” was originally created and published by The Accountant, a GlobalData owned brand.
