Innovative Technologies for Audit Firms
As the technological revolution continues to advance, audit firms have to face the challenge of harnessing and utilizing these technologies to the advantage of their clients. Many of these technological advances aren’t choices, but essential to ensure the future of auditing.
The most modern technology tools that are having a major impact on the auditor are machine learning, data analytics and robotic process automation. These tools enable auditors to get a more complete view of client processes, inventory and system controls, which they can share with boards and management.
Another emerging technique is blockchain, which could reduce the time for clearing financial transactions from months to hours. This could allow for continuous risk assessments to be made during the audit period rather than a single year-end assessment.
Argus is an example of a software that makes use artificial intelligence to reduce the amount of manual review and processing that is needed during an audit. It uses machine-learning and natural language processing to quickly search electronic document files. This allows auditors to concentrate their attention on more valuable tasks, such as checking for risks and confirming the results.
There are a few hurdles that could hinder the adoption of new technologies. Particularly, at companies where compensation is based on billable hours, it may be difficult to find time to experiment with new tools for technology. Additionally, the cost of initial investment as well as ongoing support and maintenance is a major consideration. However, with a constant collaboration between audit firms, standard setters and regulators These challenges can be overcome.
