As the technological revolution continues, auditing firms have to face the challenge of utilizing these technologies to benefit their clients. Many of these new technologies aren’t just a matter of choice they’re essential to an effective future in auditing.
The most cutting-edge technology tools that are making an impressive impact on the auditor are machine learning, data analytics and robotic process automation. These tools enable auditors to get a more complete view of the client’s processes, inventory and system controls, which they can share with boards and management.
Another emerging technology is blockchain, which can reduce the estimated time for clearing financial transactions from months to just a few hours. This may allow continuous risk assessments during the audit period, instead of only a single evaluation at the end of each year.
Argus, an artificial intelligence (AI)-enabled software, is one example of a new technology that is dramatically reducing the amount of manual processing and reviewing that is required during an audit. It makes use of machine-learning and natural language processing in order to search quickly for electronic document files. This allows auditors to focus their attention on more valuable activities, such as the assessment of risks and verifying results.
There are still a few obstacles that could hinder the adoption of new technologies. Particularly, in companies where compensation is based on hours billable, it can be difficult to find time to play around with new tools for technology. Additionally, the expense of initial investment as well as ongoing support and maintenance for tech can be a major factor. However, with a constant collaboration between audit firms regulators, standard-setting agencies and auditors, these challenges can be overcome.
