As the pace of technological advancement continues, audit firms face the challenge of finding ways to harness and use these technologies 3 reasons to invest in document compliance for their clients’ benefit. Many of these innovative technology aren’t choices, but essential for a future in auditing.
The most technologically advanced tools that are making a significant impact on the auditor are data analytics, machine learning and robotic process automation. These tools enable auditors to gain a deeper perspective of client processes, inventory and systems controls that they can communicate with boards and management.
Another new tool is blockchain. It can cut down the time for clearing financial transactions from months to just a few hours. This may allow continuous risk assessments during the audit period, instead of just one evaluation at the end of each year.
Argus, an artificial intelligence (AI)-enabled software, is a prime example of a technological advancement that is dramatically reducing the amount manual processing and reviewing required during an audit. It employs machine learning and natural language processing to rapidly search for electronic documents, allowing auditors focus on more valuable tasks like reviewing risk and confirming the results.
There are still a few challenges which can hinder the implementation of new technologies. It can be difficult to schedule time to test new technologies in firms that pay determined by hourly billables. The initial investment, as well as the ongoing costs of tech support and maintenance, can be significant. These challenges can be overcome through the ongoing collaboration of audit firms, standard-setting agencies and regulators.