As the technological revolution continues, audit companies face the challenge of harnessing and using these technologies to the advantage of their clients. A lot of these cutting-edge technologies aren’t just options, but essential to ensure the future of auditing.
Data analytics, machine-learning and robotic process automation are among the most advanced technology tools that make an enormous impact for auditors. These tools help auditors gain a deep understanding of client processes as well as inventory and system controls. They can then share the information to management and boards.
Blockchain is another new tool which could reduce the estimated time for financial transaction clearance to just one or two hours. This will allow continuous risk assessments during the audit period, instead of only one assessment at the end of the year.
Argus, an https://data-audit.net/2021/07/13/generated-post-2 artificial intelligence (AI)-enabled software, is one example of a technological advancement that is dramatically reducing the amount manual processing and reviewing required during an audit. It utilizes machine-learning and natural language processing to quickly search electronic documents. This lets auditors focus their attention on more important activities, such as the assessment of risks and verifying results.
There are a few hurdles that hinder the use of new technologies. It can be particularly difficult to find the time to explore new technologies in firms that pay contingent on billable hours. The initial investment, and the ongoing costs associated with maintenance and support for technology can be substantial. However, if there is a continuous collaboration between audit firms regulators, standard-setting agencies and auditors, these challenges can be overcome.