Innovative Technologies for Audit Firms

As the pace of technological advancement continues, auditing firms face the difficult task of figuring out ways to harness and utilize these new technologies to their clients and their own benefit. Many of these technological advances aren’t options, but necessary for the future of auditing.

Machine-learning, data analytics, and robotic process automation are among the most advanced technologies that are making an enormous impact on auditors. These tools let auditors gain a deeper understanding of client processes as well as inventory and control systems. They can then share this information to management as well as boards.

Another emerging tool is blockchain. It can reduce the estimated time to clear financial transactions from months to just a few hours. This will allow for continuous risk assessments to be conducted during the auditing period rather than a single year-end assessment.

Argus is an example of a software that uses artificial intelligence to cut down on the amount of manual review and processing required during an audit. It makes use of machine-learning and natural language processing in order to efficiently search electronic document files. This allows auditors to concentrate their attention on more valuable activities, such as assessing risks and confirming results.

There are still some obstacles that hinder the use of new technologies. It can be difficult to schedule time to play around with new technology for companies that pay dependent on the billable hours. The initial investment, as well as the ongoing costs of tech support and maintenance, can be significant. These issues can be solved by the continual collaboration of audit firms, standard-setters and regulators.

https://data-audit.net/2020/09/15/how-to-audit-transactions-using-data-managment-applications