Audit in the age of AI: more data, sharper insights

The vast amount of data available within organizations gives auditors far more information to work with. Traditionally, audits were largely based on sampling techniques. Thanks to new technologies, auditors can increasingly analyze entire data populations rather than selected samples. “AI helps us quickly identify unusual patterns in large datasets,” explains Dreezen. “This enables us to identify risks more rapidly and focus our attention on transactions that require further investigation.”

This mainly provides greater depth. For example, KPMG can analyze entire revenue streams and verify whether invoices have been processed correctly, completely, and on time. Unusual purchase invoices or atypical transactions can also be identified more quickly. Auditors can then discuss these findings sooner with management, the audit committee, or the board of directors.

“This way of working also helps us gain control over increasingly complex business models. It gives us a clearer understanding of how an organization operates and enables us to determine more effectively where a deeper level of analysis is needed,” says Trumpener.

All these analyses depend on the quality of the underlying data. Auditors must be able to rely on information that is complete, accurate, and properly structured. KPMG therefore verifies, among other things, whether the data being analyzed reconciles with the underlying financial information and assesses the control environment in which that data is generated. This role is clearly defined. As an independent auditor, KPMG identifies risks and shares its findings with the client, but does not implement controls itself. “It remains the company’s responsibility to strengthen its control environment where necessary. That is how we safeguard our independence,” Dreezen emphasizes.

Even when using AI, critical oversight remains essential. “You cannot simply rely on the output generated by AI,” says Trumpener. “You need to assess whether the output is logical, whether the sources are reliable, and whether the results fit the client’s specific context.”

That is why the principle of human in the loop remains central: auditors continue to evaluate and interpret the results. To support this, KPMG applies, among other measures, a Trusted AI Framework and thoroughly tests new technologies before they are used in audits.

Stakeholders also expect auditors to identify emerging risks quickly and stay abreast of technological developments. “We need to continuously keep up with change,” he concludes.

Financial expertise and a professionally skeptical mindset remain at the core of the profession. At the same time, new skills are becoming increasingly important. Auditors need to understand how data is generated, assess technology-related risks, and critically evaluate AI outputs. As technology takes over more repetitive tasks, it creates additional capacity for analysis and higher-value work. This can also help address the shortage of specialized finance professionals. “Nevertheless, a solid understanding of traditional audit procedures remains essential,” says Dreezen. “Young auditors may perform certain tasks themselves less frequently, but they still need to understand exactly what the technology or AI agents have done to properly assess and validate the results.”

This is also changing the way auditors are trained. In addition to traditional professional development programs, KPMG regularly organizes sessions on emerging technologies and their practical applications. “Developments are moving so quickly that training can no longer be a one-off exercise,” says Trumpener. Continuous learning is becoming an integral part of the profession.

Trumpener and Dreezen expect audits to continue evolving toward continuous auditing in the years ahead. Technology will increasingly support data analysis as part of this process. “Auditors use these capabilities to assess risks, ask the right questions, and place results in the proper context. Because no matter how powerful technology becomes, one principle remains paramount for KPMG: quality is always the ultimate objective.”

This article was created in collaboration with De Tijd and L'Echo