As the whirlwind of technological progress continues, audit firms are faced with the difficult task of figuring out ways to harness these technologies to their clients for their benefit. Many of these innovative technology aren’t just options, but essential to ensure the future of auditing.
Data analytics, machine-learning and robotic process automation are among the most advanced tools in technology that have made an enormous impact on auditors. These tools enable https://data-audit.net/2021/07/08/generated-post auditors to gain a deep understanding of the client’s processes such as inventory, process, and system controls. They can then communicate this information with management and boards.
Another emerging tool is blockchain. It can cut down on the time of financial transaction clearance from months to a matter of hours. This will allow continuous risk assessments throughout the audit period, rather than only one assessment at year-end.
Argus is an example of a software that makes use of artificial intelligence to decrease the amount of manual review and processing that is needed during an audit. It employs machine learning and natural language processing to efficiently search electronic documents. This allows auditors to concentrate their attention on more valuable tasks, like assessing risks and confirming results.
However, there remain a number of obstacles that can limit the acceptance of these technologies. In particular, at firms where compensation is based on billable hours, it can be difficult to find the time to test the latest technology tools. Also, the cost of initial investment and regular support and maintenance could be a significant factor. These challenges can be overcome by the continual collaboration of auditors, standard-setting firms and regulators.
