For too long, the audit industry has clung to a “SALY” (same as last year) mentality, slow to embrace the digital transformation revolutionizing other sectors. But that era is fading fast. With undeniable benefits like efficiency gains, improved collaboration, and enhanced security, cloud-based technology is becoming the go-to choice for forward-thinking firms.
Clients and regulators now expect faster, more insightful, and secure audits. By 2030, audits as we know them will be unrecognizable, driven by AI, automation, and real-time cloud collaboration. The question isn’t whether to adopt these technologies—it’s when. Firms that stick to legacy tools risk becoming the laggards of the industry, struggling to meet the new standard and client expectations.
Trullion, Suralink, Validis, and Baker Tilly recently explored this evolving landscape and uncovered key strategies for building a future-proof audit tech stack.
Will you lead the change or be left behind?
Defining the audit tech stack
With the plethora of technologies available, it can be challenging for audit firms to differentiate between providers and gain full visibility into what each solution actually does. Broadly speaking, audit tech can be divided into four categories:
- Data collection and preparation. The foundation of audit tech is the ability to collect, clean, and prep accounting data. A data collection tool should be able to gather high-quality, granular data in an efficient manner.
- Audit workflow management. The audit process involves managing a large number of documents coming from very disparate sources. A good workflow management tool should make it easy to create, track, and share documents, saving time and reducing the number of errors.
- Audit automation and analytics. Once you have client data and supporting documentation in place, you have to make sense of it with analysis. Some critical capabilities include matching transactions to supporting evidence, extracting data, and validating financial statements.
“With automated tools, we are skipping the tedious process of sifting through files during activities like Test of Details,” said Jordan Sklar, Solutions Consultant at Trullion. “And not only that, we can work with much larger data sets, far beyond the status quo sample size of 25 items.”
- Reporting. For all the work that happens behind the scenes, reporting is perhaps the most important deliverable, because that is what the client sees. Audit tech should help reporting be more clear and accurate, and avoid being misleading. Many firms are still using Excel and Word for reporting, but technology has the potential to push the envelope when it comes to communicating audit results.
“Both clients and the audit industry are driving the adoption of AI,” said Jeremy Smith, CTO at Suralink. “Leveraging these technologies can help meet compliance and security standards while extending auditor capabilities.”
All-in-one vs. best-in-breed solutions
There is much discussion in the audit industry about the pros and cons of end-to-end vs. best-in-breed solutions. End-to-end tools have the advantage of convenience and the perceived simplicity of working with a single vendor; however, they rarely excel at all audit functions and many are slow to innovate. Best-in-breed solutions, on the other hand, are industry leaders in their specialties and typically lean into innovation and product development.
Core characteristics
Regardless of the specific function of each solution, anybody looking to build a modern audit technology stack should look for these three core characteristics.
- Cloud-based. Cloud-based solutions provide secure, client-specific data handling within a flexible, scalable, and cost-effective framework.
- Open APIs. It’s critical for the components of the audit tech stack to be connected, integrated solutions where data can flow seamlessly.
- Innovation-oriented. Because industry is always changing, the value of a tech solution goes beyond what it offers now—a provider needs to demonstrate the ability to innovate and adapt so that its solution remains effective for years into the future.
“Many companies focus on what software offers now without considering what it will offer in the future,” said Kevin Fulcer, Senior Manager and Baker Tilly. “Accountants aren’t always known for being nimble, but we need to evaluate the ability of software providers to be nimble and innovate over time.”
Trullion’s Audit Suite
Trullion’s Audit Suite meets many of the technology challenges faced by audit firms today. The solution integrates AI-powered automation with a user-friendly platform to help auditors centralize and streamline their process. Trullion is also partnering with leading technology providers Suralink and Validis to build an ecosystem that enhances data automation, real-time collaboration, and audit accuracy.
Regardless of which solutions they choose, the key for audit firms is to embrace change. “We live in a world where convenience is everything,” said Jeff Gramlich, Managing Director at Validis. “We can now accomplish, in just a few minutes, audit tasks that used to take hours. The pace of change is going to continue to accelerate, and we’re excited about it.”
You can learn more about Trullion’s Audit Suite (and Trulli, our GenAI-powered chatbot!) here. And you can watch the full webinar here.
