As the rapid pace of technological advancement continues, audit companies face the daunting task of finding ways to harness these new technologies to their clients for their benefit. Many of these new technologies aren’t just a matter of choice they’re essential for a successful future in auditing.
The most advanced technology tools that are having a major impact on the auditor are machine learning, data analytics and robotic process automation. These tools let auditors gain a thorough knowledge of the processes of clients such as inventory, process, and control systems. They can then share this information to management as well as boards.
Another emerging tool is blockchain, which can reduce the estimated time to clear financial transactions from months to hours. This will allow for continuous risk assessments to be conducted during the audit period, rather than a single year-end assessment.
Argus, an artificial intelligence (AI)-enabled software, is a prime example of a new technology that is drastically reducing the amount of manual processing and reviewing required during an audit. It employs machine learning and natural language processing to quickly search electronic documents. This lets auditors concentrate their attention on more valuable tasks, like checking for risks and confirming the results.
However, there are a number of obstacles that may hinder the application of these tools. It can be difficult to find time to experiment with new technology in firms that pay dependent on the billable hours. Additionally, the expense of initial investment as well as ongoing tech support and maintenance is a major consideration. These challenges can be overcome by a continuous collaboration between auditors, standard-setting firms and regulators.