How Technology Is Rewriting the Audit Rulebook

Technology is rapidly transforming the world of auditing, and Africa is no exception.

In this episode, we speak to Moses Tibamwenda, Audit Partner at BDO, about how innovations like artificial intelligence, cloud computing and blockchain are changing how auditors examine financial records and assess risk.

The conversation also explores how the rise of startups and emerging industries is creating new challenges for auditors, especially when companies operate with limited structures and systems.

Listen in as we unpack how auditing is evolving in a fast-changing digital economy.

Transcript

SPEAKER_00 0:04

How is technology shaping auditing in Africa? In this episode, an expert explains how AI, startups and new industries are changing how auditors assess risk and build trust. From over 2,376 cities and 178 countries, we bring you the Good Morning Africa podcast. Good morning Africa. Welcome aboard your person, everything business in Africa and with a Dong. For more follow us on Twitter at the K Financial News, and you can find me at Withadong. Technology is rapidly transforming the world of auditing and Africa is no exception. In this episode, we speak to Moses Steven Mwinder, our audit partner at video about how innovations like artificial intelligence, cloud computing, and blockchain are changing how auditors examine financial records and assess risk. The conversation also explores how the rise of startups and emerging industries is creating new challenges for auditors, especially when companies operate with limited structures and systems. Listen in as we unpack how auditing is evolving in a fast-changing digital economy. What are some of the trends that you see, especially on the African continent? What are some of the issues that are framing how we look at audits on the continent?

SPEAKER_01 1:19

Yeah, that's a good question. So if you think world over, what is actually happening? There's lots of disruption from technology. So what we are seeing is that, you know, with the advent of the likes of AI, cloud computing, blockchain, we are actually seeing that, you know, we're having to evolve as auditors. Because in this space, you know, um, and if you look at what an audit entails, uh, we are looking at numbers that are coming from information systems, so definitely the integrity of the information systems dictates the integrity of you know the outcome and reports. So there's a very big um uh onset of technology. We're embracing it and we're building that into the audit systems, tools, processes. One of the days where we would focus on you know vouching physical documents. Right now we're using lots of you know computer-aided analytic techniques. So data analytics focusing on where the risk is, you know, what is actually keeping us awake at night and the likes. Um, but generally we have seen that move, and then also because of you know um the fact that many of the investors do see that Africa is a potential hub for business. We are seeing that there's a lot of foreign direct investment coming in as well, um, and that's touching on a number of the emerging industries. Um, so we have to really embrace the change that is happening at a global scene because that affects how we do our work. And then we no longer have geographical borders, although you know the practice is heavily regulated, there are jurisdictional requirements, but we work in packs or teams. Um so if you don't have experience there, you could borrow experiences from more developed economies, and ultimately it's ensuring that we uphold stakeholder trust.

SPEAKER_00 3:15

Okay. Uh, and we have a lot, you know, in the last few two years or so, we've seen a lot of emerging industries, uh emerging sectors that people are kind of trying to figure out how to how to handle. Yeah, uh, how do you create um uh systems to audit things that you're also new at?

SPEAKER_01 3:32

Yeah. Um that's a good question. If you look at the backbone of audit, I say if I wear my hat as an auditor, I can work in any space. Reason being, not only are we trained on having a certain skill set required for audit, but we are trained to put our thinking cap on, to put ourselves in a position of, you know, what are the principles here? Is it a rules-based approach we need to follow? Do we need to think outside the box? So for a number of these emerging industries, um, and the way we approach audits is that we need to first and foremost humble ourselves and learn from you, the experts, you who knows how the business runs, you who knows the systems and processes. Before we impose ourselves, then we try and add value by also teaching you best practice and what we do. So I can't take away the fact that there's a lot of learning, reading that happens, but two, we also borrow from existing benchmarks frameworks. So whether it's a new emerging industry, there is probably someone who has done it somewhere. Like King Solomon said, there's nothing new under the sun. So it's just someone reinventing the wheel, doing it different, and all that. But if you also typically look at an audit on a daily basis, um, we are faced with so many differences, um, different industry, different clients. Even if it's the same industry, you know, clients have different frameworks, governance, processes, ETC. So there's lots of diversity. As an auditor, you actually just get used to that change, and I think that equips us to be able to embrace, you know, new emerging industries, technologies, and the likes. Ultimately, we disdisect it. We believe in following the trail, um, so long as we understand the full picture.

SPEAKER_00 5:20

Okay. I I think a lot of the conversations that we've had in the last year are around startups and their lack of uh what's the thing that they call it? Lack of traditional structure. Yeah, yeah.

SPEAKER_01 5:34

Yeah.

SPEAKER_00 5:34

Whether it's in the way they finance, whether it's in the way they handle their staff.

SPEAKER_01 5:38

Yeah.

SPEAKER_00 5:38

Are you seeing this in the in in the audit world where you have to audit startups? And how do you go about it to ensure that there is value for money for the investor? Yeah. But you also kind of keep into the non structure structure of the startup world.

SPEAKER_01 5:54

So again, I would like to say that um we do um face some of those challenges, especially for startups. Um, sometimes they are inadequacies and the amount of capital they have to invest in, putting up robust systems, processes, which comes with time, and we understand that. Um, but ultimately, um, if you um understand what an audit is, and usually audits are based on international standards, so you would hear of the international standards on auditing. What that is, is it takes a risk-based approach. So we look at these startups and you know, we dissect what is the inherent risk with a startup. Uh, if you're a tech startup, um, you know, are your systems robust and can they handle the core business that you are actually setting up to do? Um, if you're in retail, you know, do you have customers and do you have sufficient cash flows to at least continue in business for the foreseeable future? Now, those business inherent risks, which are really um unique to startups, um, and they have lots of issues, I must admit, um, that translates into audit risk. So on each and every audit engagement, we'll try and evaluate that risk. It could be different for different startups depending on you know what the core focal areas are. So we try and create that profile, um, and of course, the way we apply our audits is in such a way that we wouldn't apply the same level of rigor to an entity that you know is established has been there. Um, for instance, a family business, there's certain things you just know won't get done. But then if the control structure is lacking, for lack of a better word, uh, what are the mitigating measures in place to ensure that whatever will be reported in the financial statements? Because ultimately, as auditors, our responsibility is to ensure that the numbers they're reporting to the stakeholders, whether it's the shareholders, whether it's the bankers, whether it's the employees, and anyone else interested in what's going on in the startup actually reflects what's on ground. And um, to do that, we need to make sure that we cover all these different aspects of startups. So, yes, um, startups definitely there are different nuances and challenges around, you know, uh whether they have capital, whether they have systems, processes, policies in place. Um, so we see how that translates into the financial reporting aspect, what are they actually reporting on? And then as auditors, um gone are the days where we just used to check boxes. We are now advisors of the future. So based on what works for an entity that size and where you want to go, your vision, your mission, you know, what you've actually set up to do, we're able to advise that, you know, at the least cost available, this is what uh options you have, and we would encourage you to do this because this is the risk, you know, and uh we make certain recommendations. So that is how we believe we help startups.

SPEAKER_00 9:07

Okay. And a quick look at the markets. MTN Group, Africa's biggest mobile operator, unveiled a strategic reset that put South Africa and Nigeria at the heart of its growth plans, while Iran, one of its biggest money spinners, did not get a mention on paper. Iran, where the US and Israel launched strikes two weeks ago, remains one of MTN's most valuable assets. 300 million US dollars. The partnership generated millions of dollars in profit, but the income is stuck in the country because of US sanctions. MTN said it does not expect to achieve its share of profits from Iran cell, which amounted to 136 million US dollars in 2025 anytime soon. Instead, in a strategic reset announced alongside its 2025 earnings report, MTN positioned itself as an African-anchored digital platform using cash from its core mobile businesses and digital infrastructure such as Towers to fund faster growth in its fintech operations. MTN swung into US$1.6 billion profit in 2025 after unfavorable currency swings a year ago hit its bottom line. The port chairman Abu Beka Omar Haydi said the measure is intended to ensure fairness to both cargo owners and shipowners and to prevent the retroactive application of charges to shipments arranged before the onset of the Gulf crisis. The authority warned that violations would face strict administrative and regulatory measures under port regulations. Global shipping is under further strain, according to a report released today by Greco, a leading corporate risk consultant and a specialty insurance broker across Central and Eastern Europe. The firm noted that even before the Iran war, global shipping patterns were distorted by attacks on merchant vessels in the Red Sea, pushing major container lines to rebout to the Cape of Good Hope. The escalation with Iran now adds a second shock with carriers facing simultaneous disruptions both at the Red Sea and the Gulf. Thank you for always waking up for that. Good morning, Africa's product of the K Financial. If you have suggestions or want to check out more stories, visit the website, that's the K Financial.com. Don't forget to subscribe. You can find us on all social media platforms at the K Financial, and you can find me at Vitadon.