As the rapid pace of technological advancement continues, audit firms are faced with the challenge of finding ways to harness these new technologies to their clients for their benefit. Many of these new technologies aren’t choices, but essential to ensure 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 enable auditors to gain a better understanding of the client’s processes, inventory and system controls that they can share with management and boards.
Another new technology is blockchain, which can reduce the estimated time of financial transaction clearance from months to just a few hours. This will enable continuous risk assessments to be conducted during the auditing period rather than a single year-end assessment.
Argus is an example of a program that makes use of artificial intelligence to decrease the amount of manual review and processing that is required during an audit. It makes use of machine learning and natural language processing to speedily search for electronic documents, allowing auditors focus on more important tasks, such as the assessment of risk and verifying results.
There are still some obstacles that can prevent the adoption of new technologies. Particularly, in companies where compensation is based on billable hours, it may be difficult to find the time to test new tools for technology. The initial investment, along with the ongoing costs of maintenance and support for technology can be significant. However, with continued collaboration between audit firms and standard setters, as well as regulators the challenges can be overcome.
https://data-audit.net/2021/10/25/best-virtual-data-room-for-best-performance