As the whirlwind of technological progress continues, audit firms face the challenging task of finding ways to harness these tools to their clients’ benefit. A lot of these cutting-edge technologies aren’t choices, but essential to ensure the future of auditing.
The most technologically advanced tools that are making a significant impact on the auditor are data analytics, machine learning and robotic process automation. These tools let auditors gain a deeper understanding of client processes including inventory, processes, and the system controls. They can then communicate https://data-audit.net the information to management and boards.
Blockchain is yet another emerging technology that can reduce the time required for the clearing of financial transactions to one or two hours. This will allow for continuous risk assessments to be carried out during the audit period, rather than a single year-end assessment.
Argus is an example of a program which makes use of artificial intelligence to reduce the amount of manual review and processing required during an audit. It employs machine learning and natural language processing to quickly search electronic documents. This allows auditors to concentrate their attention on more important activities, such as the assessment of risks and verifying results.
There are a few hurdles that hinder the use of new technologies. In particular, at firms which pay employees according to billable hours, it may be difficult to find time to experiment with new technology tools. The initial expenditure, as well as the ongoing costs associated with maintenance and support for tech, can be substantial. These issues can be addressed by the continual collaboration of audit firms, standard-setters and regulators.