In the business world, the word audit can sometimes be a worry for certain individuals. This is mainly in the case of a year-end external audit. It requires effort not only from the auditor but also from the relevant personnel of the respective organization. For instance, accountants are one of the primary sources of information for audits; therefore, there can be occurrences of stressful work routines for them. However, with the rising tech advancement, the audit processes are changing for both: auditors and firms. In this blog, we discuss the top 5 audit trends and key priorities in 2025. But first, we need to understand what an audit is in general.
What is an Audit?
The word audit is used in various contexts, but here, we are generally referring to external audits and internal audits. So, what is the distinction between the two? Well, an external audit is usually conducted at the relevant year-end by a third party, i.e., an external professional or a firm, to give an independent opinion on the truth and fairness of financial statements. On the other hand, an internal audit, as the word says, is internal; however, it is outsourceable. The purpose of an internal audit is mainly to test and enhance internal controls, risk, and efficiency. Furthermore, the third-party audit can be a regulatory requirement for many businesses around the world. However, an internal audit is optional for many enterprises but a good measure to improve governance.
Top 5 Audit Trends and Key Priorities in 2025
The year 2025 is critical for many entities as the business landscape is changing due to advancements in technology such as artificial intelligence. Let’s highlight the top 5 audit trends in 2025.
1. Artificial Intelligence and Machine Learning
In recent times, there has been a rise in artificial intelligence (AI) and machine learning (ML). For general understanding, these technologies promote automation with speed and accuracy without much human intervention. Many firms, including audit firms, are now using techniques to automate certain processes to speed up the overall audit process. Furthermore, businesses are also using such techniques in their processes. Therefore, audits will now be more efficient and accurate in highlighting fraud and errors.
2. Cloud Auditing
Like cloud accounting, we are now moving into the era of cloud audit. This technology will enhance the audit process, as we will now have remote auditing. Indeed, it might not be possible to conduct a full audit remotely, but a combination of physical and remote audits will increase overall efficiency. For instance, we can have real-time data sharing and analysis.
3. Cyber Security Audit
Although the use of technology brings benefits, there are cons too. One of the prime dangers of their use is cybersecurity threats. Therefore, to test internal controls, auditors must test the efficiency, effectiveness, and security of information systems, including hardware and software. Furthermore, auditors will now need to assess compliance with the system with cybersecurity regulations such as ISO 27001. ISO 27001 is an international standard set by the International Organization for Standardization (ISO) & International Electro-Technical Commission (IEC) for managing information security.
4. ESG Auditing
With the rise of global interest in climate and governance, ESG (environmental, social, and governance) audits are gaining momentum. Investors often look for such audits before investing in a company, especially in large conglomerates. Furthermore, auditors will now look closely into sustainability reporting to check compliance with any relevant regulations.
5. Digital Assets Audit
With the increase in the use of blockchain applications such as cryptocurrency, auditors must be aware of blockchain auditing, smart contract validation, and digital asset valuation. Many entities invest in or otherwise keep digital assets. Therefore, the correct valuation is critical for a true and fair presentation of financial statements.
The key takeaway from top audit trends is that auditors must keep themselves updated with changing technology.
Conclusion
The top 5 audit trends and priorities in 2025 are mostly tech-related. Firstly, the rise in interest and use of AI needs adjustments in the audit process. However, the adoption will benefit both the auditor and the respective enterprise; a win-win situation. The use of technology, such as cloud accounting, brings cybersecurity threats. Therefore, audit firms will now have to focus on testing information technology and other tech systems. Furthermore, they also have to check compliance with any relevant regulations, such as ISO 27001. Similarly, other technologies, including blockchain, also demand increased awareness. Climate change, social awareness, and research stress ESG reporting and audits. An independent ESG audit might bring massive changes in how investors perceive a business. Therefore, firms must take care of environmental, social, and governance issues efficiently.
Creative Zone Tax & Accounting
Our firm, CZTA, is well-versed in modern audit techniques and related regulations for entities operating in the UAE. Whether it be an external audit, internal audit, or ESG audit, you can come to us with confidence. Book a consultation today to discuss how you can keep your business compliant. Contact us today.
