As the rapid pace of technological advancement continues, audit companies face the daunting task of finding ways to harness and apply these new technologies to their clients and their own benefit. A lot of these cutting-edge technologies aren’t just for show they’re essential for an audit’s future that is successful.
Machine-learning, data analytics and robotic process automation are among the most advanced technologies that are making an impact on auditors. These tools enable auditors to gain an in-depth knowledge of the processes of clients as well as inventory and control systems. They can then share this information to management as well as boards.
Another emerging tool is blockchain, which can cut down the time required for financial transaction clearance from months to just a few hours. This could allow for continuous risk assessments to be conducted during the audit time period rather than a single annual assessment.
Argus, an artificial intelligence (AI)-enabled software, is a prime example of a technology dramatically reducing the amount of manual processing and reviewing required during an audit. It makes use of machine learning and natural language processing to rapidly scan electronic documents which allows auditors to concentrate on more important tasks, such as reviewing risk and confirming the results.
However, there remain some issues that could hinder the adoption of these technologies. Particularly, in companies which pay employees according to billable hours, it may be difficult to find the time to test new tools for technology. The initial investment, and the ongoing costs associated with maintenance and support can be significant. But, with continued collaboration between audit firms and standard setters, as well as regulators These challenges can be overcome.