As the technological revolution continues to advance, audit firms face the challenge of harnessing and utilizing these technologies to their clients’ advantage. Many of these advanced technologies aren’t just options but are essential for a successful future in auditing.
The most advanced technology tools that are making a significant impact on auditors are machine learning, data analytics and robotic process automation. These tools allow auditors to gain a thorough understanding of the client’s processes, inventory, and control systems. They can then share this information to management and boards.
Blockchain is a new tool which could reduce the time required for the clearance of financial transactions to a few hours. This may allow continuous risk assessments throughout the period of audit instead of just a single evaluation at the end of each year.
Argus is an example of a software that uses artificial intelligence to decrease the amount of manual review and processing required during an audit. It makes use of machine-learning and natural language processing in order to search quickly for electronic documents. This allows auditors to concentrate their attention on more valuable tasks, like reviewing risks and confirming results.
There are a few hurdles that could hinder the adoption of new technologies. Particularly, at companies where compensation is based on hourly billing, it might be difficult to find time to test new tech tools. The initial expenditure, as well as the ongoing costs of maintenance and support can be significant. However, with a constant collaboration between audit firms, standard setters and regulators, these challenges can be overcome.
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