I want to talk about something that’s been on my mind a lot recently: the transformation happening in the audit space. 

Audit is fundamentally changing. It’s shifting from a human-intensive model to a tech-enhanced one, transforming how audits are executed. As a former auditor for EY and now a Transformation Manager for DataSnipper, I’ve witnessed this shift firsthand, and overall, I’m excited about the opportunities it brings. 

However, I understand that this excitement is far from universal. It’s fair to say there is a clear mix of distinct (maybe even conflicting) emotions–comfort and security for what is and hesitation and optimism for what may be.

I want to set my stall out early by stating that I firmly believe that embracing technology is the key to unlocking greater value in our profession. The industry is changing rapidly; it has to. We’re witnessing exponential growth in technology, specifically AI, with more data, fewer auditors, and an ever-increasing list of responsibilities. 

From Billable Hours to a Hybrid Pricing Model

In audit, we’re witnessing the start of this evolution. One example, firms are moving from purely billable hours to a hybrid pricing model that includes a technological fee. This shift acknowledges the essential role of advanced tools—like automation, data analytics, and the aforementioned AI—now more than ever. These technologies enable us (auditors) to analyze entire data populations, providing deeper insights beyond traditional sampling methods. This capability not only enhances our efficiency but also empowers us to deliver more meaningful contributions per hour worked to clients.

That said, truly unlocking these benefits requires us to embrace new skills that blend tech expertise with strategic judgment. As auditors, I firmly believe we must upskill, adapting to the demands of a tech-driven landscape. The result: a future where technology complements human expertise, raising audit quality and delivering even greater value to our clients.

Within my role as a Transformation Manager (admittedly, at a company with a tech solution), I’ve seen firsthand that firms moving first or early to integrate new technologies into their audit processes have a competitive advantage. This advantage will only become more pronounced as technology inevitably becomes industry standard.

I know the term “competitive advantage” is often used vaguely. However, one clear example is attracting new talent. We’re facing a genuine talent crisis in audit as the industry becomes less appealing to young people. Future professionals are more tech-savvy and have greater expectations regarding technology in the workplace—by the way, as do I! So, trying to compete for new talent without embracing innovation or relying on outdated tech solutions is a recipe for failure.

Closing Thoughts

I’m optimistic about this transition. The passion for our industry remains strong, and I believe that by embracing technology, we can enhance our role as strategic partners for our clients. 

I know it's in our nature to be cautious and skeptical, and rightly so. But I implore you all: while it is and will always be essential to critically evaluate each product we encounter, let’s commit to a future that embraces technology. The path forward must be a technological one. 

It’s an exciting time to be part of this tech and AI evolution–there’s no denying that the decisions we make now will shape the next generation of audits. I don’t think it’s an exaggeration to say that our profession hasn’t experienced something this transformative since the introduction of Excel.

I, for one, am excited to pioneer these advancements alongside you all, reinforcing the vital role audit plays in upholding trust and accountability within our society.