IFIAR: 2026 Report on the Use of Technology in Audits

Posted 14 May 2026 Written by Acts Online
Category Justice

Brought to you by SA Accounting Academy: The International Forum of Independent Audit Regulators (IFIAR) has released a report examining the integration of advanced technology in auditing and the associated regulatory risks.

The International Forum of Independent Audit Regulators (IFIAR), which includes the South African Independent Regulatory Board for Auditors (IRBA) as a member, has issued the 2026 Report on the Use of Technology in Audits. This publication, developed by the IFIAR Technology Task Force, provides observations on how emerging tools are reshaping audit workflows across 56 jurisdictions globally.

According to the report, audit firms are increasingly embedding advanced data analytics, artificial intelligence (AI), and automation to enhance efficiency and reduce the burden of repetitive tasks. The IFIAR notes that a human-led approach is essential to leverage these innovations effectively, particularly when used to deepen analysis and enhance critical thinking. The report identifies several key areas where technology is currently being applied to improve audit quality:

  • The consistent execution of audit procedures across various global engagements;
  • Enhanced risk assessment capabilities through the use of predictive analytics and real-time data monitoring; and
  • The identification of unusual or unauthorized transactions that might otherwise remain undetected.

Emerging Risks and Governance

While these technologies offer protection to investors, the IFIAR highlights significant risks that require regulatory attention. These include challenges surrounding the oversight of complex algorithms, the ethical implications of AI use, and the risk of “over-reliance” where auditors accept technological outputs without sufficient professional skepticism. The report emphasizes that firms must not substitute technological output for the necessary challenge of the work performed.

To address these concerns, the IFIAR encourages audit firms to establish and maintain a defined governance system. This system must be designed to formally manage technology risks and ensure compliance with firm-wide policies. The report serves as a foundational document for regulators to monitor how technology-driven changes impact the effectiveness of the audit profession.

Click here to download the 12-page Report: 2026 Report on the Use of Technology in Audits

What this means for you, your business, or your clients

  • For yourself: You must maintain documented evidence of professional skepticism when reviewing AI-generated audit findings to ensure compliance with auditing standards regarding human-led oversight.
  • For your business: Your firm must review its system of quality management to incorporate formal governance protocols specifically for the procurement, testing, and deployment of automated audit tools.
  • For your clients: Clients should be prepared for more intensive data extraction requirements as audit firms transition toward real-time data analytics and predictive risk assessment models.

Originally published at https://accountingacademy.co.za/news/read/ifiar-2026-report-on-the-use-of-technology-in-audits

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