As the technological revolution continues, audit firms have to face the challenge of harnessing and using these technologies to benefit their clients. Many of these technological advances aren’t options, but necessary for the future of auditing.
The most advanced technology tools that are making an enormous impact on the auditor are machine learning, data analytics and robotic process automation. These tools let auditors gain a thorough understanding of the client’s processes including inventory, processes, and the system controls. They can then communicate this information with management and boards.
Blockchain is a new tool which could reduce the estimated time for financial transaction clearance to just a few hours. This will allow continuous risk assessments throughout the audit period, rather than just a single review at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is an example of a technology that is dramatically reducing the amount of manual processing and reviewing required during an audit. It makes use of machine learning and natural language processing to speedily browse through electronic document files and allows auditors to concentrate on more valuable tasks like reviewing risk and confirming the results.
There are a few hurdles which can hinder the implementation of new technologies. It can be difficult to find the time to experiment with new technology in companies where compensation is determined by the billable hours. The initial investment, along with the ongoing costs of maintenance and support for tech, can be substantial. However, if there is a continuous collaboration between audit firms and standard setters, as well as regulators These challenges can be overcome.