As the technological revolution continues, audit firms face the challenge of harnessing and using these technologies to their clients’ advantage. Many of these technological advances aren’t options, but necessary for a future in auditing.
Data analytics, machine-learning and https://data-audit.net/2021/07/08/generated-post robotic process automation are among the most advanced technologies that are making a significant impact for auditors. These tools enable auditors to gain a thorough understanding of client processes, inventory, and system controls. They can then communicate the information to management and boards.
Blockchain is a new tool which could reduce the estimated time for the clearing of financial transactions to a few hours. This could allow continuous risk assessments throughout the period of audit, instead of only a single review at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is a prime example of a technological advancement that is drastically reducing manual processing and reviewing required during an audit. It utilizes machine learning and natural language processing to speedily browse through electronic document files, allowing auditors to focus on higher-value activities such as checking for risk and confirming results.
There are still a few obstacles which can hinder the implementation of new technologies. Particularly, in companies that pay their employees based on hourly billing, it might be difficult to find time to try out new technology tools. The initial expenditure, as well as the ongoing costs of tech support and maintenance, can be significant. However, with a constant collaboration between audit firms, standard setters and regulators the challenges can be overcome.
