It is quite evident that technology has made a remarkable impact on the finance and accounting industry. Professionals & Businesses can now perform their work in a more efficient, accurate and timely manner. With these developments in the industry, auditors are embracing new technology which enables them to provide improved and effective audit services.
Technology gives us the opportunity to perform comprehensive testing with improved audit quality. Due to such advancement, high volume of data and analytics are easy to access in an equipped manner which enables the auditor to identify risk related to fraud, mismanagement, financial reporting, and business operations. At the same time, it also allows the auditor to adopt such relevant audit methodology to perform the audit more effective and with deeper insight. Technology also leads to business efficiency, timely market approach and offers more customer reach than before. With these changes, companies have become more transparent in disclosing their primary information, core processes, management strategies, and performance.
These are the audit trends that are continuously shaping the audit industry.
- Artificial Intelligence (AI)
AI makes use of computers and machines to perform the task that requires human intelligence when done by humans. The idea of AI is already rolled out in various industries such as automobile, healthcare sector, education, etc. Fortunately, the audit profession is also exploring the opportunities and potential for harnessing AI within an audit approach. AI provides the audit profession with multiple opportunities to improve the audit work, identifies the risk, and tightens the internal controls. It also helps in providing quality service which is delivered in a more efficient way which brings overall value addition to the audit process.
- Data Analytics
It is important for the auditor to know the right source of data from where it comes and also how accurate it is. Quality of information and reporting is highly dependent on the integrity of the data provided. Data analysis helps auditors to examine irregularities in data trends or patterns and identify errors that the company may have made during their process. Data analytics tools are also of great help for auditors when it is necessary for them to look at the large volume of data collected and processed by their organization.
- Cyber Security
The threat from cyberattacks is continuously evolving. In the current scenario, it is equally important for the auditor to ensure that the company’s cyber data are well protected and secure and also to monitor the process and source of data collection.
- Finding abnormalities and insights
The significant part of the audit process involves ensuring that the financial statements are accurate and free from material misstatement. Due to innovation and technology, it has become easier and quicker for the auditor to identify the anomalies and risk in the financials as well as other KPI’s
- Technology Development
All these technology developments have made it necessary for auditors to develop a deeper understanding of the latest financial oriented tools and software to conduct the audit practice enhancing audit approach and planning in an effective and efficient manner.
The recent audit trend speaks about the significance of technology in audit practice and the necessity for a firm to invest, adopt and deliver the best audit process. Know more about our Audit & Assurance services.
Last Updated: 19th December 2018
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Tag: Assurance, Audit, Technology