Welcome to
the Audit Firm
of the Future
As the audit function evolves, progressive
technologies deliver a path forward
Change Is Challenging
Several headwinds are forcing the audit function to evolve, including:
An ongoing talent shortage:
75% of public
accounting CPAs will retire in the next
15 years²
The unemployment
rate for accountants
and auditors is 1.9%,
almost half the national
unemployment
rate of 3.8%¹
75% of auditing
professionals say that
the industry-wide
talent shortage is the
number one challenge
theirfirm faces³
Technology:
of audit professionals are
overwhelmed by how the
pace of technology change
will impact their job⁴
37%
Regulations:
of audit firms say that keeping
up with changing professional
standards is a major challenge
and a high priority⁵
71%
Thomson Reuters Institute asked auditing professionals to rank their top challenges:
58%
41%
41%
Attracting and hiring
skilled professionals
Retaining staff
Meeting client
expectations while
maintaining a high
standard of service
27%
27%
27%
Competition and fee pressure
Implementation of
technologies and
integration into
existing systems
Changing
regulations and
compliance
Progressive Technologies to the Rescue
To meet these challenges, many audit firms are considering adding progressive
technologies such as generative AI, machine learning, natural language processing,
and others to their audit workflows:⁶
well
49% are
underway or
are considering
progressive
% technologies
but have yet
to implement
them
33
starting to
implement
progressive
technologies
18%
are not
considering
implementing
progressive
technologies
at this time
78%
of audit, accounting, and tax professionals
believe the rise of artificial intelligence
and generative AI will have a high or even
transformational impact on the profession
in the coming five years
Tap here to access
2024 Thomson Reuters Future of Professionals report
Audit professionals are using or planning to use AI/Gen AI to modernize a variety
of functions:
57%
Data extraction and entry
38% Identifying anomalies or irregularities
32%
Risk assessment
31%
Reviewing client documents
29%
Predictive analytics
29% Data cleansing and validation
25%
Fraud detection and behavioral analysis
24% Automated reporting
22% Compliance monitoring and automated compliance checks
22% Reviewing technical documents
Clients also embrace technology change in auditing:
80%
of companies want their auditors to use AI for a broad range of activities, from
data analysis, quality management, and anomaly identification to risk mitigation,
fraud detection, and predictive analysis⁷
Technologies Propel Audit Forward
Progressive technologies provide limitless possibilities for auditors.
Here are some of the use cases:
Analyzing audit populations to identify higher risk population segments
Identifying anomalies and flagging suspicious transactions
Visualizing client general ledger data in-depth
Automating testing and verification processes
Importing and organizing trial balance data quickly
Synthesizing data from audit workpapers and client documents
Performing first-draft assessments of GAAP compliance and
complete audit documentation
Writing audit reports and other audit communications
Best Practices for Becoming a Firm of the Future
Thomson Reuters is helping thousands of auditing firms become future-ready.
The most successful firms have the following in common:
They are weaving new technologies into their current methodology and workflows in a way that is practicaland
provides continuous fast-paced improvement
They are using AI and machine learning to power advanced data
ingestion capabilities and eliminate impediments to gathering data
They are using technology tools to deepen relationships, deliver
more insightful analysis, and become a strategic partner to their clients
They are modernizing their testing approaches to test audit populations
more efficiently and automate significant aspects of the audit
They are working with a trusted technology partner to help the firm
leverage these new technologies without having to make high-risk investments
¹ https://www.roberthalf.com/us/en/insights/salary-hiring-trends/demand-for-skilled-talent/accounting-finance
² https://www.njcpa.org/article/2023/04/28/the-aging-of-the-accounting-profession
³ https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2024/06/2024-Audit-Survey.pdf
⁴ https://infogram.com/gtt-2024-slides-master-1h0n25y55gw5z6p?live
⁵ https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2024/06/2024-Audit-Survey.pdf
⁶ https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2024/06/2024-Audit-Survey.pdf
⁷ https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2024/kpmgus-ai-in-financial-reporting-and-audit-may-24.pdf
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