As the technological revolution continues, audit firms are confronted with the task of harnessing and using these technologies to the advantage of their clients. Many of these new technologies aren’t alternatives, but necessary for a future in auditing.
The most technologically advanced tools that are making a significant impact on auditors are machine learning, data analytics and robotic process automation. These tools enable auditors to gain a deeper perspective of the client’s processes, inventory and systems controls, which they can share with management and boards.
Another emerging tool is blockchain, which could reduce the time required for financial transaction clearance from months to just a few hours. This could enable continuous risk assessments during the audit period, rather than just one evaluation at the end of each year.
Argus is an example of a software that makes use of artificial intelligence to reduce the amount of manual review and processing that is needed during an audit. It employs machine learning and natural language processing in order to speedily search for electronic document files. This allows auditors to focus their attention on more important activities, such as checking for risks and confirming the results.
However, there remain a number of obstacles that may hinder the application of these tools. Particularly, for companies which pay employees according to hours billable, it can be difficult to find the time to experiment with new tech tools. The initial investment, as well as the ongoing costs associated with maintenance and support for tech, can be substantial. These issues can be solved by a continuous collaboration between audit firms, standard-setting organizations and regulators.
https://data-audit.net/2020/04/05/audit-and-its-types-objects-methods