As the pace of technological advancement continues, audit companies face the daunting task of finding ways to harness and use these tools to their clients for their benefit. Many of these technological advances aren’t just options, but essential to ensure the future of auditing.
Data software that automates the process of managing documents analytics, machine-learning and robotic process automation are the most advanced technology tools that make an impact on auditors. These tools enable auditors to get a more complete view of the client’s processes, inventory and systems controls, which they can share with management and boards.
Another new technology is blockchain, which can cut down the time required for financial transaction clearance from months to hours. This could enable continuous risk assessments to be carried out during the audit time period rather than a single year-end assessment.
Argus is an example of a program that uses artificial intelligence to decrease the amount of manual review and processing needed during an audit. It employs machine learning and natural language processing to swiftly scan electronic documents, allowing auditors focus on higher-value activities such as checking for risk and confirming results.
But there are still some obstacles that could hinder the adoption of these technologies. It is particularly difficult to find time to experiment with new technology in firms where compensation is contingent on the billable hours. Additionally, the expense of initial investment as well as ongoing support and maintenance for tech is a major consideration. These issues can be resolved by a continuous collaboration between audit firms, standard-setting agencies and regulators.