Research: Unlocking Barriers to Audit Technology

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Overview

Technology, including AI, is changing the audit market and has significant potential to improve audit quality among a wide range of firms. The FRC supports innovation and the responsible and appropriate use of technology to promote high audit quality, and competition and growth in our regulated sectors.

However, while innovation is driving change in parts of the market, smaller and medium-sized audit firms can face challenges in adopting technology. The FRC’s SME Audit Market Study found that audit firms may lack the resources and technical knowledge to implement and customise technology. This can limit smaller audit firms’ ability to invest in audit-related technology, and if they do, they rely on “off-the-shelf” third-party solutions. It could also result in disparities in audit quality between firms that can invest in technology and those that face barriers to doing so.

The Unlocking Barriers to Audit Technology is a research and engagement project which aims to understand these challenges in more detail and engage stakeholders across the sector to identify practical solutions.

Working closely with stakeholders including Recognised Supervisory Bodies, the project aims to:

  • Understand the needs, barriers and opportunities for UK audit firms who wish to adopt technology;
  • Identify the key participants in the audit technology ecosystem and understand their roles and relationships, including technology vendors and audit methodology providers; and
  • Work collaboratively with ecosystem participants to prioritise barriers and, where practical, identify action to support the adoption and effective use of technology within audit firms.

The project aims to develop a clear evidence base to identify priorities, inform further collaboration with market participants, and unlock key barriers facing audit firms.

For further information or to contribute to the research, contact: [email protected].

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