As the technological revolution continues, auditing firms have to face the challenge of harnessing and using these technologies to their clients’ advantage. Many of these technological advances aren’t choices, but essential for a future in auditing.
Machine-learning, data analytics, and robotic process automation are among the most advanced technology tools that make an impact on auditors. These tools help auditors gain a deeper understanding of the client’s processes including inventory, processes, and the system controls. They can then share the information to management and boards.
Another new tool is blockchain. It can cut down the time to clear financial transactions from months to hours. This could allow continuous risk assessments during the audit period, instead of only one assessment at year-end.
Argus, an artificial intelligence (AI)-enabled software, is a prime example of a technology dramatically reducing the amount manual processing and reviewing that is required during an audit. It makes use of machine learning and natural language processing to quickly scan electronic documents which allows auditors to concentrate on more valuable tasks such as checking for risk and confirming results.
But there are still a number of obstacles that could hinder the acceptance of these technologies. In particular, at firms which pay employees according to billable hours, it can be difficult to find time to experiment with new technology tools. The initial investment, as well as the ongoing costs of maintenance and support can be significant. These challenges can be overcome with the continued collaboration of audit firms, standard-setters and regulators.
https://data-audit.net/2020/09/15/how-to-audit-transactions-using-data-managment-applications