As the technological revolution continues, audit companies are faced with the challenge of utilizing these technologies to benefit their clients. Many of these innovative technology aren’t alternatives, but necessary to ensure the future of auditing.
The most advanced technology tools that are making an enormous impact on the auditor are machine learning, data analytics and robotic process automation. These tools allow auditors to gain an in-depth knowledge of the processes of clients including inventory, processes, and control systems. They can then communicate this information to management and boards.
Blockchain is another emerging tool that could cut the time required for the clearance of financial transactions to one or two hours. This could enable continuous risk assessments to be carried out during the audit period rather than a single annual assessment.
Argus, an artificial intelligence (AI)-enabled software, is a prime example of a technological advancement that is drastically reducing the amount of manual processing and reviewing that is required during an audit. It utilizes machine learning and natural language processing to rapidly search for electronic documents and allows auditors to concentrate on more important tasks, such as the assessment of risk and verifying results.
However, there remain some issues that could hinder the adoption of these technologies. It can be particularly difficult to find the time to play around with new technology in companies where compensation is determined by billable hours. The initial investment, as well as the ongoing costs of maintenance and support for technology can be significant. These challenges https://data-audit.net/2020/03/16/management-board-software-for-audits/ can be overcome by the continual collaboration of auditors, standard-setting firms and regulators.