Innovative Technologies for Audit Firms

As the pace of technological advancement continues, audit firms are faced with the challenge of finding ways to harness and utilize these technologies for their clients to their advantage. Many of these advanced technologies aren’t just for show but are essential for the future of auditing.

The most technologically advanced tools that are making an enormous impact on the auditor are data analytics, machine learning and robotic process automation. These tools let auditors gain a deeper understanding of the client’s processes such as inventory, process, and control systems. They can then share this information to management and boards.

Another emerging technique is blockchain, which could reduce the time of financial transaction clearance from months to just a few hours. This will 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 one example of a technology dramatically reducing the amount of manual processing and reviewing required during an audit. It utilizes machine-learning and natural language processing in order to speedily search for electronic document files. This allows auditors to focus their attention on more important activities, such as reviewing risks and confirming results.

But there are still several obstacles that may hinder the use of these technologies. It can be particularly difficult to find time to test new technologies for companies that pay contingent on hourly billables. Additionally, the expense of initial investment and ongoing support and maintenance for tech is a major consideration. These challenges can be overcome with the continued collaboration of audit firms, standard-setting agencies and regulators.

https://data-audit.net/2021/10/25/best-virtual-data-room-for-best-performance/