As the whirlwind of technological progress continues, audit firms are faced with the challenge of finding ways to harness these technologies to their clients and their own benefit. A lot of these cutting-edge technologies aren’t options, but necessary to ensure the future of auditing.
The most technologically advanced tools that are making an enormous impact on auditors are machine learning, data analytics and robotic process automation. These tools let auditors gain a thorough knowledge of the processes of clients as well as inventory and system controls. They can then share this information to management and boards.
Blockchain is another new tool which could https://data-audit.net/2020/04/05/audit-and-its-types-objects-methods reduce the time required for financial transaction clearance to just a few hours. This could enable 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 one example of a technology drastically reducing manual processing and reviewing that is required during an audit. It employs machine learning and natural language processing to speedily search for electronic documents. This allows auditors to concentrate their attention on more valuable activities, such as checking for risks and confirming the results.
However, there are several obstacles that may hinder the use of these technologies. Particularly, for companies where compensation is based on billable hours, it can be difficult to find time to experiment with the latest technology tools. The initial investment, as well as the ongoing costs associated with maintenance and support for technology can be significant. However, if there is a continuous collaboration between audit firms, standard setters and regulators and regulators, these issues can be overcome.