Preparing Audit Teams for Swarm Auditing

This episode of The Institute of Internal Auditors Presents: All Things Internal Audit Tech explores how emerging AI technologies are reshaping the internal audit profession. Hosted by Aadesh Gandhre, Chief Audit Executive at DTCC, the conversation features Dave Montez and Richard Penfil from PayPal, who introduce the idea of “swarm auditing.”

Swarm auditing refers to an AI-augmented audit approach where multiple AI agents work in parallel with human auditors. Instead of relying on static, backward-looking audit cycles, this model supports continuous, adaptive oversight that evolves as risks and business conditions change. The guests describe this shift as moving from “flip phones to smartphones” in audit practice—emphasizing agility, real-time responsiveness, and embedded intelligence.

Throughout the episode, they cover:
* Why traditional audit frameworks can’t keep pace with AI-driven, continuous risk environments.
* How auditors can move from being “doers” to strategic reviewers who guide and validate AI outcomes.
* The organizational and cultural barriers to adopting AI responsibly, such as legal constraints and fear of change.
* The importance of creating “permission to experiment” so auditors can test new tools and approaches safely.
* How to balance independence and collaboration when sharing AI capabilities across teams.

The discussion concludes with practical guidance on taking a first step toward swarm auditing, such as embedding small AI pilots into the audit plan or aligning with enterprise AI initiatives.

Essentially, this episode paints a forward-looking picture of an audit profession that must become continuous, data-driven, and co-evolving with AI—without losing its core values of objectivity and trust.