Skip to content

Audit and Assurance · Automated tools and techniques

Emerging Technologies in Audit: AI, RPA, Drones and Blockchain

Updated 11 October 2026 · Fact-checked

Emerging technologies in audit are automated tools such as artificial intelligence, robotic process automation, drones and blockchain that help auditors gather and assess evidence faster and over larger populations. To answer exam questions, state how the tool works, the benefit, the limitation, and the effect on audit risk.

Understand Emerging Technologies in Audit

An audit needs sufficient appropriate evidence. Traditionally auditors tested samples by hand. Automated tools let them test far more data, faster, and often with better accuracy. The tool does not change the audit objective. It changes how evidence is obtained.

Artificial intelligence (AI) uses software that learns from data to spot patterns. In audit it can review whole populations of transactions, flag unusual items, read contracts and help assess risk. Its output still needs auditor judgement. AI can be hard to explain, so auditors must understand what it does and check that it is reliable.

Robotic process automation (RPA) uses software 'robots' to carry out repetitive, rule-based tasks. Examples are sending receivable confirmation requests, matching documents, reperforming calculations and extracting data. It is fast and consistent. It only does what it is programmed to do, so the program must be tested and controlled.

Drones can fly over or into sites. Auditors can use them to observe inventory at a large or hard-to-reach location, such as a timber yard, a quarry or a tall warehouse racking system. They give visual evidence of existence. They do not prove ownership, condition in detail or valuation, and rules on flying them must be followed.

Blockchain is a shared digital ledger in which transactions are recorded in linked blocks that are very hard to alter. Because records are time-stamped and shared, evidence of occurrence and ownership may be stronger. Auditors still need to understand the system, test who can enter transactions, and consider the risks around the data entered and any off-chain items.

For all tools, the auditor must consider the reliability of the data going in, the controls over the tool, the skills of the audit team, cost, and data security and confidentiality.

Key rules to remember

Audit evidence test
Evidence must be sufficient (quantity) and appropriate (relevance + reliability)
Any tool is judged by whether it improves one or both of these.
Tool answer structure
What it does → benefit → limitation → effect on audit risk
Use this four-part pattern for each technology in a written answer.
Assertion link
Drones: existence. Blockchain: occurrence, rights. AI/RPA: whole-population testing, accuracy
Link each tool to the assertion it mainly supports. These are typical links, not fixed rules.

How to solve Emerging Technologies in Audit questions

Use this method for any question on automated tools in audit.

  1. 1Read the scenario and identify the client, the account area and the risk or assertion in question.
  2. 2Name the technology that fits (AI, RPA, drones, blockchain or a general automated tool).
  3. 3Explain briefly how it would be used on this client, not in general terms.
  4. 4State the benefits: coverage of whole populations, speed, accuracy, better evidence, or access to difficult sites.
  5. 5State the limitations: cost, skills needed, reliability of input data, system controls, security, and the need for judgement.
  6. 6Link to evidence: say which assertion is supported and whether the evidence is sufficient and appropriate.
  7. 7Conclude with the auditor's action, such as testing the tool, reviewing output, and still using professional scepticism.

Quickest way: Benefit-limit-link check

When to use it: Use this for Section A or B objective questions and for short written requirements worth few marks.

  1. Spot the tool in the question.
  2. Recall its core use in one phrase: AI finds patterns, RPA repeats rules, drones see sites, blockchain records shared transactions.
  3. Eliminate options that claim the tool replaces auditor judgement or removes all risk.
  4. Pick the option that matches the right assertion and includes a sensible caveat.

Common mistakes in Emerging Technologies in Audit

  • Saying technology replaces the auditor's judgement.

    Students focus on automation and forget that the auditor remains responsible for the opinion.

    Fix: State that the tool supports the audit, and the auditor must evaluate its output with professional scepticism.

  • Claiming drones prove ownership or valuation of inventory.

    Students treat any inventory evidence as complete evidence.

    Fix: Say drones mainly support existence and quantity. Ownership and valuation need other procedures.

  • Saying blockchain data is always correct.

    Because records are hard to change, students assume the input is true.

    Fix: Explain that blockchain protects records after entry. The auditor must still test the accuracy and authorisation of what is entered.

  • Listing only benefits.

    Students learn the advantages and skip the risks.

    Fix: Always give at least one limitation such as cost, skills, data reliability, security or system failure.

  • Giving generic answers not linked to the scenario.

    Students write memorised notes about the technology.

    Fix: Tie each point to the client's size, systems, location or risk named in the question.

  • Confusing RPA with AI.

    Both are called automation.

    Fix: RPA follows fixed rules for repetitive tasks. AI learns from data and can identify patterns or make predictions.

Worked examples

Example 1

An audit client stores timber in several large open yards. Inventory is material. Explain how drones might help the auditor at the inventory count and state two limitations.

Show the solution
  1. Identify the assertion: existence and quantity of inventory.
  2. Use: a drone can fly over the yards and capture images or video, so the auditor can observe stacks that are hard or unsafe to reach.
  3. Benefit: the count can be faster, safer and cover the whole site, and images can be kept as evidence in the working papers.
  4. Limitation one: drones cannot confirm ownership, condition inside stacks or valuation, so other procedures such as inspecting purchase documents and testing net realisable value are still needed.
  5. Limitation two: the auditor needs the skills, permissions and safe operating conditions to use drones, and weather or image quality may reduce reliability.

Answer: Drones give visual evidence of existence and quantity over a large site quickly and safely. They do not prove ownership, condition or valuation, and they depend on skills, permissions and conditions, so they supplement the normal count procedures.

Example 2

The auditor of a retail company proposes to use robotic process automation to send receivables confirmation requests and match replies to the ledger. Discuss the advantages and risks.

Show the solution
  1. State what RPA does: it carries out repetitive, rule-based tasks using programmed software robots.
  2. Advantage: it can process all customer balances rather than a sample, with consistent and fast matching.
  3. Advantage: it frees staff time for exceptions and judgement areas, such as differences and non-replies.
  4. Risk: the robot may be set up wrongly, for example using wrong customer addresses or matching rules, so the auditor must test the programme.
  5. Risk: the confirmation process must stay under the auditor's control, and data sent must be kept secure and confidential.
  6. Conclude: the auditor should review exceptions, follow up non-replies with alternative procedures and keep scepticism.

Answer: RPA improves speed, coverage and consistency in confirmations. The risks are programming errors, weak control over the process and data security, so the auditor must test the robot, control the process and investigate exceptions.

Exam tips

  • Always give both a benefit and a limitation. Examiners reward balanced points.
  • Link each tool to the assertion or audit procedure it supports, and to the scenario facts.
  • Never say a tool replaces the auditor or removes audit risk. Say it supports evidence gathering.
  • For objective questions, look for the option with a sensible caveat. Absolute claims are usually wrong.
  • Write short, separate points with a clear label such as 'Benefit' or 'Risk' to make marking easy.

Emerging Technologies in Audit in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Emerging Technologies in Audit: frequently asked questions

How is artificial intelligence used in audit?

AI can review whole populations of transactions, spot unusual items, help assess risk and read documents. The auditor must understand the tool, check its reliability and still apply judgement to its output.

How do drones help in an inventory count audit?

Drones give images or video of inventory in large or hard-to-reach places, supporting existence and quantity. They do not prove ownership or valuation, so other procedures are still required.

What is the impact of blockchain on audit?

Blockchain can give shared, time-stamped records that are hard to change, which may strengthen evidence of occurrence and rights. Auditors must still understand the system, test what is entered and consider related risks.

What is the difference between RPA and AI?

RPA follows fixed rules to do repetitive tasks such as matching or sending requests. AI learns from data to detect patterns or predict outcomes.