As the technological revolution continues to advance, audit firms face the challenge of harnessing and utilizing these technologies to their clients’ advantage. Many of these innovative technologies aren’t just options they’re essential to the future of auditing.
Machine-learning, data analytics and robotic process automation are the most advanced technology tools making an enormous impact for auditors. These tools let auditors gain a deeper knowledge of the processes of clients as well as inventory and control systems. They can then share the information to management and boards.
Blockchain is yet another emerging technology that could cut the estimated time needed for the clearance of financial transactions to one or two hours. This will allow for continuous risk assessments to be carried out during https://data-audit.net/2022/01/04/3-reasons-to-invest-in-document-compliance the audit time period rather than a single year-end assessment.
Argus is an example of a program that uses artificial intelligence to reduce the amount of manual review and processing that is needed during an audit. It makes use of machine learning and natural language processing to rapidly search electronic document files and allows auditors to concentrate on higher-value activities such as the assessment of risk and verifying results.
However, there remain some obstacles that may hinder the application of these tools. Particularly, for companies which pay employees according to hours billable, it can be difficult to find the time to play around with the latest technology tools. The initial expenditure, as well as the ongoing costs of maintenance and support for tech, can be substantial. However, if there is a continuous collaboration between audit firms regulators, standard setters and audit firms, these challenges can be overcome.