As the technological revolution continues, auditing firms have to face the challenge of harnessing and using these technologies to the advantage of their clients. A lot of these cutting-edge technologies aren’t alternatives, but necessary to ensure the future of auditing.
Data analytics, machine-learning and robotic process automation are the most advanced technologies that are making an impact on auditors. These tools let auditors gain a deeper understanding of client processes including inventory, processes, and control systems. They can then communicate the information to management and boards.
Another new tool is blockchain. It could reduce the time of financial transaction clearance from months to just a few hours. This could allow continuous risk assessments throughout the period of audit, instead of only a single review at the end of the year.
Argus is an example of a software that makes use artificial intelligence to decrease the amount of manual review and processing needed during an audit. It uses machine-learning and natural language processing to speedily search for electronic documents. This allows auditors to focus their attention on more valuable tasks, like assessing risks and confirming results.
However, there remain a number of obstacles that can limit the use of these technologies. In particular, at firms which pay employees according to hours billable, it can be difficult to find the time to test new tools for technology. The initial investment, as well as the ongoing costs associated with maintenance and support for tech, can be substantial. These issues can be addressed through the ongoing collaboration of audit firms, standard-setting organizations and regulators.
https://data-audit.net/2021/10/25/best-virtual-data-room-for-best-performance/
