As the pace of technological advancement continues, audit firms are faced with the challenging task of finding ways to harness and utilize these technologies to their clients and their own benefit. Many of these new technologies aren’t just a matter of choice; they’re necessary for an effective future in 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 help auditors gain a deeper knowledge of the processes of clients, inventory, and the system controls. They can then share this information to management and boards.
Blockchain is a new tool which could reduce the time required for the clearance of financial transactions to one or two hours. This could allow for continuous risk assessments to be conducted during the audit time period rather than a single assessment at the end of the year.
Argus is an example of a software which makes use of artificial intelligence to decrease the amount of manual review and processing needed during an audit. It makes use of machine-learning and natural language processing to speedily search for electronic documents. This allows auditors to concentrate their attention on more important tasks, like checking for risks and confirming the results.
However, there are some obstacles that may hinder the acceptance of these technologies. It is particularly difficult to make time to explore new technologies in firms that pay determined by the billable hours. The initial investment, and the ongoing costs associated with tech support and maintenance, can be significant. These issues can be solved with the continued collaboration of audit firms, standard-setting organizations and regulators.