As the pace of technological advancement continues, audit companies face the daunting task of finding ways to harness and use these technologies for their clients to their advantage. Many of these technological advances aren’t just options, but essential for a future in auditing.
Machine-learning, data analytics, and robotic process automation are among the most advanced tools in technology that have made a significant impact for auditors. These tools allow auditors to gain a deeper understanding of the client’s processes, inventory, and system controls. They can then share the information to management and boards.
Blockchain is another emerging tool which could reduce the time required for financial transaction clearance to just one or two hours. This may allow continuous risk assessments throughout the period of audit instead of just one review at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is an example of a technological advancement that is dramatically reducing the amount of manual processing and reviewing that is required during an audit. It utilizes machine learning and natural language processing to rapidly scan electronic documents which allows auditors to concentrate on higher-value activities such as assessing risk and confirming results.
There are still a few challenges which can hinder the implementation https://data-audit.net/2020/09/15/how-to-audit-transactions-using-data-managment-applications/ of new technologies. Particularly, in companies which pay employees according to hourly billing, it might be difficult to find the time to try out new technology tools. The initial investment, along with the ongoing costs associated with maintenance and support for technology can be substantial. These issues can be solved by a continuous collaboration between audit firms, standard-setters and regulators.