As the technological revolution continues to advance, audit firms have to face the challenge of harnessing and utilizing these technologies to the advantage of their clients. Many of these innovative technologies aren’t just a matter of choice but are essential for the future of auditing.
Machine-learning, data analytics and robotic process automation are among the most advanced technology tools making a significant impact for auditors. These tools allow auditors to gain a thorough knowledge of the processes of clients as well as inventory and control systems. They can then share this information to management and boards.
Blockchain is another new tool that could cut the time required for the clearance of financial transactions to a few hours. This may allow continuous risk assessments throughout the audit period, instead of just one assessment at the end of the year.
Argus, an artificial intelligence (AI)-enabled software, is one example of a new technology that is dramatically reducing the amount manual processing https://data-audit.net/2022/01/04/software-that-automates-the-process-of-managing-documents/ and reviewing that is required during an audit. It utilizes machine-learning and natural language processing to quickly search electronic documents. This allows auditors to concentrate their attention on more valuable tasks, such as checking for risks and confirming the results.
But there are still a number of issues that could hinder the application of these tools. It is particularly difficult to find the time to explore new technologies for companies that pay dependent on hourly billables. Additionally, the expense of the initial investment and ongoing support and maintenance for tech can be a major factor. But, with continued collaboration between audit firms regulators, standard-setting agencies and auditors, these challenges can be overcome.