As the whirlwind of technological advancement continues, auditing firms face the difficult task of figuring out ways to harness and utilize these technologies to their clients’ benefit. A lot of these cutting-edge technologies aren’t just for show but are essential for over here a successful future in auditing.
The most cutting-edge technology tools that are making an enormous impact on auditors are data analytics, machine learning and robotic process automation. These tools allow auditors to gain an in-depth knowledge of the processes of clients such as inventory, process, and control systems. They can then share this information to management and boards.
Blockchain is a new tool which could reduce the estimated time needed for the clearing of financial transactions to one or two hours. This will enable continuous risk assessments to be made during the audit time period rather than a single annual assessment.
Argus, an artificial intelligence (AI)-enabled software, is an example of a technology dramatically reducing the amount of manual processing and reviewing that is required during an audit. It utilizes machine learning and natural language processing to quickly browse through electronic document files, allowing auditors focus on higher-value activities such as assessing risk and confirming results.
However, there are several obstacles that could hinder the use of these technologies. Particularly, at companies that pay their employees based on billable hours, it may be difficult to find time to play around with the latest technology tools. The initial investment, and the ongoing costs associated with maintenance and support can be significant. These issues can be solved through the ongoing collaboration of audit firms, standard-setters and regulators.