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Finance transformation increases agility and efficiency, but without strong oversight it can lead to compliance gaps and financial risk. Audit committees need to ensure alignment with business objectives while maintaining transparency and control – and ask the relevant questions.
Why audit committees must lead the charge in finance transformation
In today’s rapidly evolving business environment, finance functions are moving beyond their traditional role to become strategic partners that drive business value through deeper, predictive insights. This transformation is being driven by ERP modernisation, automation, and advanced data analytics, enabling greater efficiency and more informed decision making across the business.
However, finance transformation is more than an internal initiative – it has a direct impact on governance, risk management, and financial reporting. As organisations navigate geopolitical uncertainty and rapid technological change, including AI-driven solutions and cloud-based automation, the audit committee must play an active role in ensuring oversight, transparency, and risk mitigation. Without proper governance, transformation efforts can introduce new complexities, from control weaknesses and compliance challenges to financial reporting disruptions and talent capability gaps. A well-informed audit committee is key to ensuring that finance transformation enhances – rather than compromises – financial integrity and business resilience.
Our recent assurance transformation study, “Redefining the Audit: The Impact of Digitalisation in Finance and Accounting”, underlines the importance of this topic. In Switzerland, while only 15 percent of companies have fully completed their finance transformation, 85 percent are currently transforming or plan to do so within the next three years. In addition, 67 percent are planning to upgrade their ERP systems or introduce new technologies. Notably, more than 90 percent of organisations are already benefiting from automation and cloud solutions, yet many finance processes remain partially manual – with companies scoring an average of 6.17 out of 10 on the automation maturity scale. These findings highlight both the progress that has been made and the significant challenges that lie ahead, reinforcing the need for audit committee oversight.
Successful finance transformation requires a clear vision, well-designed processes, and the right technology to drive long-term value. Strong leadership is essential – one that can bridge the gap between the current and future state, drive cross-functional collaboration, and foster adaptability.
The audit committee should focus on four key areas: strategic alignment, the impact of technology and automation, evolving talent needs, and measuring the outcomes of finance transformation.
Critical questions the audit committee should consider
Strategic plan: ensuring a clear transformation roadmap
Finance transformation must align with the company’s strategy and long-term goals. The audit committee should focus on:
- What are the key risks to the financial reporting process and how will they be managed?
- How will management provide transparent updates to the audit committee on progress and challenges?
- How does the transformation support the overall business strategy?
- What are the expected benefits to finance and the wider organisation?
Without a clear roadmap, companies risk disruption and compliance gaps. Strategic alignment ensures effective oversight and long-term sustainability.
Standardisation and automation: strengthening controls in a digital finance function
As finance functions adopt automation, AI, and cloud-based ERP solutions, audit committees must ensure that these advances strengthen controls and compliance, rather than introduce new risks. Key considerations include:
- How will automation impact finance processes, internal controls, and risk exposure?
- What measures are in place to ensure financial reporting reliability and compliance throughout the transformation process?
- How are data privacy and security ensured during the transformation?
- What is the ERP and cloud roadmap, and how will the internal controls environment leverage digital solutions?
While automation enhances efficiency, it can also create compliance gaps and control weaknesses. The audit committee must ensure robust safeguards, strong controls, and continuous risk monitoring to maintain the integrity of financial reporting and regulatory compliance.
Talent: building the finance workforce of the future
Finance transformation isn’t just about technology – it requires new skills and capabilities. As finance becomes more data-driven, upskilling is essential. Key questions for the audit committee:
- How will finance roles and skills evolve?
- What’s the plan for upskilling or acquiring new capabilities?
- Who is leading the transformation, and do they have the right vision and cross-functional influence?
A data-driven finance function requires both technical expertise and strategic thinking. Without the right talent, organisations risk inefficiencies and missed opportunities.
Outcomes: measuring success and ensuring audit readiness
Finance transformation should deliver tangible benefits, driving efficiency, better forecasting, and cost optimisation – but success requires ongoing measurement and audit alignment. Key questions for the audit committee:
- How is success measured (e.g., cost savings, risk reduction, forecasting improvements)?
- What mechanisms are in place to ensure the external auditor is informed about the transformation’s implications?
- How does the finance team make sure that the audit approach is adapted accordingly?
Without clear tracking and audit alignment, organisations risk compliance challenges and weakened controls. The audit committee must ensure that transformation delivers real value while maintaining financial reporting integrity, audit readiness, and regulatory compliance.
Unlocking opportunities with PwC’s finance transformation assurance
For a successful finance transformation, clear oversight, strong controls, and effective risk management are essential. The audit committee must understand how processes, systems, and workforce structures will evolve – and how these changes may affect the external audit. Regular, transparent updates from management on operational impact, cost management, and realised benefits are crucial for ensuring a well-managed transformation. This is where independent assurance plays a crucial role, enabling organisations to fully capitalise on opportunities such as improved data quality, faster processes, and cost savings.
PwC’s finance transformation assurance services provide independent, continuous quality assurance, offering transparency at every stage of the transformation journey. By delivering objective evaluation, risk mitigation, and compliance support, PwC helps organisations navigate complex transitions. As a trusted third party, PwC ensures that transformation efforts are structured, controlled, and aligned with best practices – giving audit committees and stakeholders the confidence they need. Our key services include:
- Independent quality assurance: Objective assessment of project objectives, risks, and deliverables, benchmarked against best practices.
- Enhanced transparency: External oversight provides increased visibility into finance transformation progress, risks, and control mechanisms.
- Risk mitigation: Proactive evaluation of internal controls to ensure audit readiness and reduce financial reporting risks before go-live.
- Stakeholder support: PwC acts as a “critical friend,” offering forward-looking advice and supporting seamless project execution.
- Cost optimisation: Early risk identification prevents costly post-implementation issues, reducing the need for rework.
By allocating a relatively small percentage of the total project budget – often between 2 and 3 percent – to a proactive assurance approach, companies can prevent costly post-implementation issues and safeguard their resources and reputation.
Finance transformation assurance: a strategic imperative for the audit committee
Finance transformation is a powerful tool to improve agility, efficiency, and effectiveness – but it also brings risks that require strong oversight. The audit committee plays a key role in ensuring alignment with business goals while maintaining financial reliability and control. Regular, transparent updates on project status, risks, and outcomes enable confident oversight. PwC’s finance transformation assurance provides independent validation, ensuring transparency and sustainable value. With the right governance and oversight, finance transformation becomes a true value driver.
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