Statutory audit exists for one purpose – to reduce risk. So what are we to say when 57% of audits last year were rated as “poorest quality” by the regulator*. At the same time, there are calls from the government to increase the scope and detail of audit. This means more firms qualifying for statutory audit and more work for firms at a time when many are struggling to find the talent they need.
Increased pressure on a system that is already struggling to deliver will only create more of the same – poor quality audits and financial stress for firms trying to make a margin.
It’s time for a new approach. One that delivers the insight and visibility that businesses need, while ensuring that audit firms can build scalable, profitable models to meet the growing demand for this service.
That’s why we created AuditBot – the first AI-native audit solution for the modern realities that the industry is facing.
The high stakes of accuracy in auditing
In our increasingly demanding audit landscape, quantifying risk has become a question of the ‘best possible’ – with this standard set as much by the time, resources and personnel available as any ideal vision of security.
After all, even the most diligent Responsible Individuals (RIs) can’t possibly review every transaction, every line of data. Firms therefore do the best they can with the people available – an increasingly scarce resource. The result is that human error becomes inevitable. And traditional auditing methods are now increasingly ill-equipped to manage the complexities and volume of modern data.
This struggle can be seen in the numbers, such as the £33.2 million in fines levied on audit firms in 2023.
Diagnosing the problem
Despite the dramatic shift towards automation in many industries, the audit sector remains heavily reliant on manual processes.
● Only 33% of audit professionals are currently leveraging AI in their workflows, compared to 76% of the industry at large.
● 73% of auditors spend over half their time on spreadsheet-based tasks such as reconciliations and data extraction.
The upshot of this is more risk for firms and less profit for audit firms. Traditional methods are not only inefficient but also bring with them the potential for expensive mistakes. As audit firms scramble to meet increasing regulatory pressures and deal with labour shortages, there’s a pressing need for a new approach.
The right tools for the job
Fixing audit requires applying the right tools to the right job. Humans are remarkably – and so far unbeatably – good at applying context and intuitive logic of the sort that that understands a company’s needs, challenges and goals.
What humans struggle with is applying a detailed process over and again – especially when every detail matters. This is what takes up the majority of audit fieldwork. But this is a capacity at which artificial intelligence (AI) has proven highly adept.
We have seen this first hand as we built AuditBot, AI-powered audit partner built to address the core challenges of the industry head-on:
- Always-On Audit: Our systems can operate 24/7, extracting and structuring client data, able to conduct 4000+ audit tests a day.
- Automated Fieldwork: By automating tasks such as data review, transaction matching, and reporting, AuditBot drastically reduces the likelihood of human error, accelerating the audit process.
- Working Paper Generation: Once data has been uploaded and tested, AuditBoy generates compliant working papers.
This is more than a technological upgrade. It’s a paradigm shift in how audits are conducted.
By automating routine tasks, it frees up your team to focus on the critical analysis and decision-making that only a human can provide, thereby enhancing both audit quality and client satisfaction.
A recent survey found that 72% of audit professionals do not see AI as a threat to their jobs; instead, they recognise it as a tool that can significantly enhance their careers.
So the question is not if audit will experience automation – it’s when your firm will get onboard in time to create a competitive advantage.
Take the lead in audit
The digital transformation of auditing isn’t a distant future. It’s happening now.
Audit firms that fail to adapt risk being left behind. AuditBot is launching industry-wide in Q1 2025 and we’re offering an exclusive early access opportunity. A limited selection of firms will receive 5 free credits worth £4,975, allowing them to experience firsthand how AuditBot can transform the way they work.
More than a trial, it’s an invitation to be part of a major shift in the industry. We want to help firms reduce risk, enhance performance, and offer the best audit service possible. Step across the gap and see what you can accomplish.
