The level of audit firm investment in data analytics is significant; just take Big Four KPMG’s investment in the IBM Watson cognitive computing technology. At the same time, client expectations are high. But the Financial Reporting Council’s (FRC) recent thematic review on the use of data analytics in audit states that it is not as widespread as might be expected. 

The big audit firms clearly believe it is the way forward for audits, not least because it is now impossible to tender for a listed company audit without a well developed data analytics offering. They are equally adamant that audit quality is, in the end, what data analytics has to be about.