The Audit Podcast

Ep 275: Turning New Ideas Into Audit Results w/ Brian Kuenzi (Stealth AI Startup)

Host: Trent Russell
Guest: Brian Kuenzi, Founder at Stealth AI Startup, Former Director of SOX & Transformation at Match Group
Date: February 24, 2026

Episode Overview

This episode explores how technological and structural shifts—especially the dominance of passive investing and advances in AI—are reshaping the audit profession. Brian Kuenzi, a finance-first auditor turned tech founder, draws connections between investor incentive structures, organizational decision-making, and how auditors can pivot to become enablers rather than just “the internal police.” The discussion is packed with insights on resource challenges, SOX overload, and how audit can reclaim its value by leveraging both risk management thinking and new technologies like AI.

Main Discussion Points and Insights

1. The Persistent Perception Problem in Audit

Timestamps: [02:25] – [08:45]

• Brian’s Background: Initially a “finance bro” intending to be an investment banker, his career took a turn into audit at EY, giving him an outsider’s perspective on the field.
• Key Issue: Auditors are often viewed as a nuisance—“Oh my God, here come the auditors”—despite their potential to add value across the company.
• SOX Overload: The introduction and proliferation of SOX compliance work has diverted auditors from value-add activities into routine, checklist-driven tasks.
• Revelation at EY: A story about a PCAOB board member dismissing audit professionals’ concerns about costs due to increased control testing, making it clear that regulators prioritize investor interests over auditor challenges.

"You think about what audit was, you know, external audit or any internal audit, and it's, you know, there's a, you know, definite value add there...but it seems like the way that people are...auditors are viewed or, oh, my God, here comes the auditors. That, that sort of perception was really strange to me."
— Brian Kuenzi [03:30]

2. The Rise of Passive Investing and Incentive Distortions

Timestamps: [08:45] – [20:49]

• Passive Investing Defined: The huge flow of money into index funds (Vanguard, BlackRock, State Street) has made these managers top shareholders in most public companies.
• Regulatory Changes: 2006 government rules forced most new 401(k) participants into automatic investment plans, fueling passive fund dominance.
• Impact on Corporate Incentives: Since passive funds buy stocks indiscriminately based on cash flows rather than company performance, CEOs and boards are less pressured by active shareholders and more by metrics like stock price growth.
• Proxy Votes & Governance: Activist investors now struggle to influence corporate governance given the inactive voting stance of passive giants.
• The Inelasticity Problem: Corporate governance and earnings quality often get ignored; “flows, not fundamentals” now dominate market behavior.

"Passive basically runs on the world's simplest algorithm. If you give me cash buy, if you ask for cash sell, that's it...They don't care who the CEO of Apple is."
— Brian Kuenzi [06:25]

"Most of the publicly traded equities...the majority of the 'shareholders' are, if you give me cash, I'm going to buy. If you need cash, I'm going to sell. And they don't really care about the earnings. They don't care about corporate governance."
— Brian Kuenzi [16:45]

3. Why Audit Struggles to Get Resources (and Why it Matters)

Timestamps: [20:49] – [29:14]

• Linking Incentives to Resource Scarcity: Passive investing’s shift in incentives makes audit and risk roles harder to justify in terms of immediate shareholder value—the focus is relentlessly on “grow the top line.”
• “Do More With Less”: This refrain stems from leadership’s need to justify headcount in strictly earnings-growth terms, leaving audit teams understaffed.
• Audit is Collateral Damage: While not the central cause, audit bears the brunt of these incentive changes, being relegated to checklists rather than strategic contributors.

"If you're an internal audit at a big public company...and you go in for your annual forecast discussion and say, 'Hey, I need to add a head,' they're going to say, 'Okay, how are you going to grow the top line for us if we add?'"
— Brian Kuenzi [20:54]

• Advice to Auditors: Understand the broader “game you’re playing”—macro incentives, not just departmental politics, explain resource pushback.
• For Audit Leadership: Frame audit’s value in terms of strategic growth and enablement, not just control and compliance.

4. The “Brake Hard to Go Fast” Analogy—Redefining Audit’s Role

Timestamps: [20:49] – [36:04]

• Racing Analogy: Just as elite racecar drivers brake hard to accelerate out of turns, organizations need strong risk management (good “brakes”) to enable aggressive (fast) business growth.
• Audit as an Enabler: Auditors should be assurance providers, empowering bolder business moves by protecting against catastrophic risks.
• Shift from Policing to Partnering: Auditors’ unique end-to-end business insights equip them to advise on strategy, not just enforce controls.

"The best drivers in the world...the ones that win are the ones that know how to brake well...If you want to go all gas, no brakes, in a car or in a company...you're eventually going to run off the track."
— Brian Kuenzi [22:32]

• Actionable Takeaway: Get audit off the checklist treadmill and back into roles where their business know-how can support innovation and operational excellence.

5. The Future of Audit: AI and Tech Integration

Timestamps: [29:14] – [36:04]

• AI as the Great Enabler: New tools will automate monotonous work, freeing auditors to re-engage with real business learning and value-adding analysis.
• Slow Adoption & Hurdles: Despite transformational potential, most AI initiatives in audit/accounting have had high failure rates in their early days (cites a McKinsey study: 90% failure).
• The Talent Pipeline Challenge: If audit remains mired in SOX testing/checklists, it will fail to attract the next generation, threatening the long-term health of the profession.
• Bright Spots: Some internal audit teams are already driving innovation and delivering on the promise of being true enablers.

"AI is going to replace all of this monotonous stuff that nobody wants to do and let people get back to learning about companies and learning how something operates."
— Brian Kuenzi [00:00] & [35:35]

• Brian’s Optimistic Close: He sees an inflection point for audit: those who “invest in good brakes” (risk management) and embrace tech will be best positioned for sustainable growth and meaningful impact.

Notable Quotes & Memorable Moments

• On the Purpose of Audit:
  "I think the value add that audit has, or should have...is providing that assurance that...if this thing goes bad, I'm not going to blow everything up."
  — Brian Kuenzi [22:55]

• On Industry Perception:
  "It's not just that audit sucks and they're the internal police. Like, that doesn't have to be the case."
  — Brian Kuenzi [31:35]

• On the Need for Holistic Understanding:
  "You should care because you should understand the game you're playing...there's a lot of stuff going on here that is out of your control."
  — Brian Kuenzi [27:10]

Timestamps for Important Segments

• Passive Investing’s Impact on Corporate Behavior: [08:45] – [19:00]
• Why Audit Gets Resource Starved: [20:49] – [22:55]
• The “Brake Hard to Go Fast” Analogy and Implications: [22:30] – [29:14]
• The Tech/AI Upside for Audit: [31:20] – [36:04]

Summary Takeaways

• Audit teams struggle for resources because structural changes (passive investing) deprioritize strategic oversight/assurance roles in favor of direct growth drivers.
• Auditors should reframe their roles from checklist enforcers to business enablers who provide the “brakes” that allow companies to take smart risks and grow confidently.
• Technological innovation (AI) offers a path to relieve auditors from monotony and revitalize the profession’s value, but only if organizations move beyond SOX tunnel vision.
• Understanding broader market and incentive trends is key to explaining (and overcoming) the persistent challenges audits face within modern corporations.

Host's Key Takeaways:

"The organization needs to know the value internal audit brings...and we've heard it over and over again, it's like, hey, internal audit just know the business really well, probably going to be okay."
— Trent Russell [29:14]

Further Listening:
Brian has also been a guest on the “IA on AI” podcast for those interested in deeper dives on AI in audit.