As the technological revolution continues, audit firms face the challenge of utilizing these technologies to the advantage of their clients. Many of these advanced technologies aren’t just for show but are essential for a successful future in auditing.
The most modern technology tools that are making an enormous impact on auditors are data analytics, machine learning and robotic process automation. These tools allow auditors to gain a better understanding of the client’s processes, inventory and systems controls, which they can share with management and boards.
Another new tool is blockchain, which can cut down on the time to clear financial transactions from months to hours. This will allow continuous risk assessments throughout the audit period, instead of just one assessment at the end of the year.
Argus is an example of a program that uses artificial intelligence to cut down on the amount of manual review and processing that is needed during an audit. It uses machine-learning and natural language processing to search quickly for electronic document files. This lets auditors concentrate their attention on more valuable tasks, like the assessment of risks and verifying results.
However, there remain some issues that could hinder the use of these technologies. In particular, at firms which pay employees according to billable hours, it can be difficult to find time to test new tools for technology. The initial investment, along with the ongoing costs of maintenance and support for tech, can be substantial. However, with continued collaboration between audit firms regulators, standard-setting agencies and auditors the challenges can be overcome.