audit and its types objects methods
As the whirlwind of technological advancement continues, audit companies face the challenge of finding ways to harness these technologies to their clients for their benefit. Many of these innovative technologies aren’t just a matter of choice they’re essential to an effective future in auditing.
The most technologically advanced tools that are making an impressive impact on the auditor are machine learning, data analytics and robotic process automation. These tools enable auditors to gain a deeper perspective of the client’s processes, inventory and system controls that they can share with boards and management.
Blockchain is a new tool which could reduce the time required for the clearance of financial transactions to a few hours. This could allow for continuous risk assessments to be made during the auditing period rather than a single year-end assessment.
Argus is an example of a program that makes use of artificial intelligence to decrease the amount of manual review and processing needed during an audit. It utilizes machine-learning and natural language processing to speedily search for electronic documents. This lets auditors focus their attention on more valuable activities, such as checking for risks and confirming the results.
There are a few hurdles which can hinder the implementation of new technologies. It can be difficult to find the time to play around with new technology for companies that pay contingent on hourly billables. Additionally, the cost of the initial investment and regular support and maintenance can be a significant consideration. These challenges can be overcome by a continuous collaboration between auditors, standard-setting firms and regulators.
