The future of auditing: integrating ESG and AI in financial oversight
Julie Sergent
Content Manager
January 23, 2025
5 min
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The auditing profession is at a crossroads, driven by the integration of Environmental, Social, and Governance (ESG) criteria and Artificial Intelligence (AI). These transformative forces are redefining traditional financial oversight and reshaping how auditors deliver value to stakeholders. As regulatory demands grow and stakeholder expectations evolve, firms must innovate to remain relevant.
At Napta, we empower audit teams to navigate this changing landscape.
The integration of ESG criteria into auditing has become a critical focus for audit firms globally. The Corporate Sustainability Reporting Directive (CSRD), a regulatory framework in the EU, mandates the auditing of non-financial information. This requires auditors to evaluate a company’s sustainability metrics alongside traditional financial data.
According to Virginie Chauvin, Partner and member of the Executive Committee at Forvis Mazars in France, this shift challenges auditors to evaluate both quantitative and qualitative metrics related to sustainability (ProServices Day, 2024).
Virginie Chauvin highlights that the implementation of the CSRD is creating new challenges for auditors, as they now need to audit non-financial information. This transformation requires adapting methodologies and upskilling teams in sustainability issues, fundamentally altering the core competencies needed in the profession.
For auditors, this evolution means:
These changes reflect a broader trend in the investment world. According to a McKinsey report, 85% of investors now consider ESG factors in their decision-making, demonstrating the growing demand for robust and reliable sustainability reporting (McKinsey, 2023).
One of the biggest challenges in ESG auditing, as noted by Virginie Chauvin, is ensuring audit teams possess the right mix of traditional audit skills and sustainability expertise. To address this, significant investments in staff training and interdisciplinary team-building are essential.
This is why Napta provides a tailored solution to help audit firms upskill their teams, develop methodologies, and stay ahead in this rapidly evolving area.
While ESG broadens the scope of audits, AI is revolutionising how they are conducted. From data analysis to predictive insights, AI enables auditors to enhance efficiency and precision.
Key applications of AI in auditing include:
Its primary applications include:
However, integrating AI into auditing is not without challenges:
By adopting AI, audit firms can enhance accuracy and efficiency, adding significant value for their clients.
Despite AI’s transformative potential, human judgment remains at the core of auditing. Virginie Chauvin emphasises the importance of critical thinking and professional skepticism. While AI accelerates data processing, auditors must interpret findings, assess their implications, and communicate them effectively.
The auditor of the future will require:
The integration of ESG and AI presents both challenges and opportunities for the auditing profession:
And many others...
The auditing profession is evolving rapidly, with ESG and AI driving the transformation. By 2030, ESG metrics could hold equal weight to financial indicators in corporate assessments, while AI will continue to refine how audits are conducted. Firms that invest today in technology, talent, and sustainability expertise will lead the industry tomorrow.
At Napta, we are committed to helping audit firms thrive in this evolving landscape: we provide the resources auditors need to stay ahead.
