07 Ago Innovative Technologies for Audit Firms
As the rapid pace of technological advancement continues, auditing firms face the challenge of finding ways to harness these new technologies to their clients and their own benefit. Many of these technological advances aren’t choices, but essential to ensure the future of auditing.
The most advanced technology tools that are making a significant impact on auditors are data analytics, machine learning and robotic process automation. These tools allow auditors to gain an in-depth understanding of the client’s processes as well as inventory and system controls. They can then communicate this information with management and boards.
Blockchain is yet another emerging technology that could cut the estimated time for the clearance of financial transactions to one or two hours. This will allow for continuous risk assessments to be performed during the auditing period rather than a single year-end assessment.
Argus is an example of a program that uses https://data-audit.net/2023/05/31/what-is-business-intelligence/ artificial intelligence to cut down on the amount of manual review and processing that is needed during an audit. It employs machine learning and natural language processing to speedily search for electronic document files. This allows auditors to focus their attention on more valuable tasks, like assessing risks and confirming results.
But there are still many obstacles that could hinder the use of these technologies. It can be difficult to schedule time to play around with new technology for companies that pay contingent on the billable hours. Also, the cost of the initial investment as well as ongoing support and maintenance can be a major factor. However, with continued collaboration between audit firms regulators, standard setters and audit firms and regulators, these issues can be overcome.
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