As the rapid pace of technological advancement continues, audit companies face the challenge of finding ways to harness and utilize these tools to their clients for their benefit. Many of these advanced technologies aren’t just options they’re essential for the future of auditing.
The most modern technology tools that are having a major impact on the auditor are machine learning, data analytics and robotic process automation. These tools help auditors gain a deeper perspective of the client’s processes, inventory and systems controls that they can communicate with boards and management.
Blockchain is another new tool that can reduce the estimated time for the clearing of financial transactions to a few hours. This will enable continuous risk assessments to be made during the audit period rather than a single assessment at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is one example of a new technology that is dramatically reducing the amount manual processing and reviewing required during an audit. It utilizes machine learning and natural language processing to quickly browse through electronic document files and allows auditors to concentrate on more valuable tasks like reviewing risk and confirming the results.
There are still some obstacles that could hinder the adoption of new technologies. It is particularly difficult to schedule time to explore new technologies in firms where compensation is based upon the billable hours. Also, the cost of the initial investment as well as ongoing tech support and maintenance could be a significant factor. These issues can be solved with the continued collaboration of audit firms, standard-setting agencies and regulators.
https://data-audit.net/2020/04/05/audit-and-its-types-objects-methods