Audit firms across Asia are in the midst of a technological transformation. What was once a labour-intensive, paper-heavy process is increasingly being augmented – and in some cases redefined – by automation, advanced analytics and emerging AI. These innovations promise greater efficiency and sharper insights, but they also raise questions about cost, skills and client expectations.
‘Our audit tools enable us to perform audit tasks with fewer staff’
Talent pressures
The profession’s embrace of new tools is partly driven by necessity. As elsewhere, practices across the region face talent shortages. Research from Deloitte and the International Federation of Accountants shows that talent shortages remain a top concern for finance leaders in Asia.
Against this backdrop, automation has become a lifeline. ‘Given the labour shortage in the industry, increasing the productivity of our audit staff is a top priority,’ explains Jenny See FCCA, audit partner at KLP in Singapore. ‘Our audit tools enable us to perform audit tasks with fewer staff, ensuring more efficient use of resources.’
At KLP, robotic process automation (RPA) was the starting point. The firm initially outsourced tool development but soon discovered that external developers lacked the depth of audit knowledge required. Building capabilities in-house proved more effective. ‘Collaboration between our RPA team and on-the-ground auditors has been essential,’ says See.
New insights
The return on investment is being realised not only in efficiency but also in the ability to deliver new insights. ‘One example is our enhanced capability in data analytics,’ she says. ‘We identified an unusual revenue trend where some streams were generating a gross loss. That red flag was highlighted to management for further evaluation. In another case, our tools matched the entire year’s sales and purchases to identify abnormal gross profit margins.’
‘A silver lining in the global pandemic has been the acceleration of digitisation’
For auditors, the benefits go beyond numbers. Automating routine tasks frees teams to focus on judgment, interpretation and communication – in other words, to focus on adding real value.
In the Philippines, RSM has taken a similarly exploratory approach. ‘We’re in an exciting period of experimentation,’ says Caesar V. Parlade, the firm’s managing partner for advisory and digital transformation. ‘A silver lining in the global pandemic has been the acceleration of digitisation. We’re seeing a growing ERP (enterprise resource planning) maturity with our clients, which is creating an opportunity to embed continuous audit into our methodology.’
Get on board
Start small. Identify repetitive, rules-based audit tasks that can be automated quickly, such as reconciliations or simple ledger checks. Early wins help build confidence among staff.
Invest in people. Upskilling is as important as acquiring new software. CPD in data analytics, training in robotic process automation and exposure to AI tools will ensure teams make the most of technology.
Collaborate with clients. Audit innovation works best when clients are on the journey, too. Encourage them to improve enterprise resource planning maturity and establish clear data-sharing protocols.
Balance risk and reward. Continuous audit and real-time access offer efficiency, but firms must also demonstrate robust information security practices to win client trust.
Look beyond compliance. Use data analytics to provide clients with business insights – from margin analysis to fraud detection – that go beyond the statutory audit. This can be a powerful way to differentiate services and win new business.
RSM Philippines has invested in the analytics platform Alteryx, developing use cases across audit, tax and consulting. Continuous monitoring is on the horizon, although concerns about data security remain. ‘Clients are cautious about institutionalising real-time access for auditors because of information security risks,’ Parlade notes.
Still, the efficiency gains are tangible. With automation reducing manual tasks, firms can better manage peak workloads and reduce staff burnout. ‘Technology is not just driving efficiency; it’s actively supporting staff wellbeing and long-term retention,’ says Parlade.
Double-edged sword
Not all effects are positive. For smaller practices, the upfront cost of developing or acquiring technology is daunting. Training staff to use tools effectively is another hurdle. See admits that integrating RPA required persistence. ‘One of the challenges is convincing auditors of its efficiency, as initial use can be slightly less efficient,’ she says. ‘Training is critical, which is why we built a robust learning management system.’
‘We aim to develop applied AI capabilities that meet local business needs’
There is also the risk of over-reliance. Automated tools can process transactions at scale but lack the scepticism and professional judgment that remain at the heart of assurance. Regulators across ASEAN have begun stressing that technology should augment, not replace, human oversight.
Looking ahead
AI is likely to be the next transformative force. RSM Philippines is already experimenting with applied AI capabilities tailored to local clients. See expects AI to become embedded in KLP’s tools within the next few years.
Yet the lesson so far is that technology is not an overnight revolution. Progress is iterative, shaped by local conditions, client readiness and the profession’s own appetite for change. The firms that succeed will be those that combine technological capability with professional scepticism and human judement.
As Parlade puts it: ‘Rather than aiming for cutting-edge R&D, we aim to develop applied AI capabilities that meet local business needs. Our goal is to support clients in developing the internal skills needed to structure their data – building the foundation for effective use of AI.’
