Digital transformation in audit: How technology and AI are reshaping internal audit

What does digitalisation mean for audits in practice? Which technologies and tools are already in use? And how does artificial intelligence fit into the audit landscape? These questions were at the forefront of discussions on 25 March at the AUDIT & RISK Conference 2025. Anton Tseshnatii, Director of Risk Audit at PwC Ukraine, shared valuable insights into the practical aspects of digital transformation and the influence of AI on audit methodologies.

According to Anton, digital transformation is gradually reshaping traditional audit practices — from planning to execution and the preparation of conclusions. Leading internal audit functions are increasingly integrating automation, data analytics and advanced technological solutions in the following areas:

• Monitoring data and key indicators in near real-time.
• Assessing companies' risk profiles and control environments.
• Performing a broader range of audit procedures more quickly, with less reliance on manual work..

The greater accessibility of technological tools allows auditors to expand audit coverage, improve accuracy, and reduce routine tasks. As a result, internal audit becomes more agile, flexible, and risk-focused, while integrating more closely with the overall risk management and control framework.

AI is advancing towards solving complex tasks at a level close to human capability and operating autonomously within defined instructions. In this context, internal audit's role is to harness AI's potential to:

• Address a wider range of risks and scenarios.
• Produce deeper analytical insights.
• Enhance the efficiency of planning and executing audit procedures.

Anton highlighted the practical use of AI in developing a Risk and Control Matrix (RCM), which helps structure risks, align them with controls, and focus audit efforts on the most material areas.

The widespread adoption of AI is creating a new risk landscape, driven by changes in customer interaction, decision-making processes, reporting, IT development, and data governance. This is why Responsible AI is gaining importance as an approach and a set of tools for assessing and implementing AI solutions, considering business needs and each company's level of maturity. Such a framework helps build trust in AI and strengthen oversight of related risks.

Moreover, amid the rise of cyber threats, AI can also be used to enhance cyber resilience—for example, to detect anomalies, support incident response, and analyse large volumes of security events. These trends are reflected in our Digital Trust Insights 2025 analytical study, which highlights growing corporate attention to digital trust and the practical use of advanced technologies in control and protection systems.

AI and other technologies are unlikely to replace humans on their own. Instead, competitive advantage will belong to those who can effectively apply these tools, adapt to change, and manage new risks in a dynamic environment.

🔗 Let's start solving it—together. Learn more about how we support audit digitalisation and the implementation of modern risk management tools.