Innovative Technologies for Audit Firms

As the whirlwind of technological advancement continues, auditing firms face the challenge of finding ways to harness and use these new technologies to their clients’ benefit. Many of these new technologies aren’t choices, but essential for a future in auditing.

The most technologically advanced tools that are having a major impact on the auditor are machine learning, data analytics and robotic process automation. These tools enable auditors to gain a greater understanding of the client’s processes, inventory and system controls that they can communicate with management and boards.

Blockchain is another emerging tool that could cut the time required for the clearance of financial transactions to a few hours. This will allow for continuous risk assessments to be performed during the audit time period rather than a one-time assessment at the end of the year.

Argus is an example of a software that uses artificial intelligence to reduce the amount of manual review and processing that is needed during an audit. It makes use of machine-learning and natural language processing to speedily search for electronic documents. This lets auditors focus their attention on more https://data-audit.net/2020/04/05/audit-and-its-types-objects-methods valuable tasks, like reviewing risks and confirming results.

There are still some obstacles which can hinder the implementation of new technologies. Particularly, for companies which pay employees according to billable hours, it can be difficult to find the time to experiment with new technology tools. Additionally, the cost of initial investment as well as ongoing support and maintenance is a major consideration. However, with continued collaboration between audit firms, standard setters and regulators These challenges can be overcome.