As the technological revolution continues, auditing firms are faced with the challenge of harnessing and using these technologies to benefit their clients. Many of these new technologies aren’t alternatives, but necessary for the future of auditing.
The most technologically advanced tools that are making an enormous impact on the auditor are data analytics, machine learning and robotic process automation. These tools help auditors gain a better understanding of client processes, inventory and systems controls that allow them to communicate with management and boards.
Another emerging technology is blockchain, which can cut down on the time for clearing financial transactions from months to hours. This could allow continuous risk assessments during the audit period, instead of just a single assessment at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is an example of a technological advancement that is drastically reducing manual processing and reviewing that is what is business intelligence required during an audit. It employs machine learning and natural language processing to speedily search for electronic documents, allowing auditors focus on more important tasks, such as assessing risk and confirming results.
There are still some obstacles that hinder the use of new technologies. It can be difficult to find the time to explore new technologies in firms that pay based upon hourly billables. Also, the cost of the initial investment and regular support and maintenance is a major consideration. These issues can be solved with the continued collaboration of audit firms, standard-setting organizations and regulators.
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