Innovative Technologies for Audit Firms

https://data-audit.net/2022/01/04/software-that-automates-the-process-of-managing-documents

As the rapid pace of technological advancement continues, auditing firms face the difficult task of figuring out ways to harness and apply these tools to their clients to their advantage. Many of these innovative technologies aren’t just for show they’re essential for a successful future in auditing.

Machine-learning, data analytics and robotic process automation are the most advanced technology tools making an enormous impact on auditors. These tools enable auditors to gain a thorough knowledge of the processes of clients such as inventory, process, and system controls. They can then communicate this information with management and boards.

Another new technique is blockchain, which can cut down the time to clear financial transactions from months to hours. This could enable continuous risk assessments during the period of audit, instead of just a single assessment at the end of the year.

Argus is an example of a program that makes use of artificial intelligence to decrease the amount of manual review and processing that is required during an audit. It employs machine learning and natural language processing in order to speedily search for electronic documents. This lets auditors concentrate their attention on more valuable activities, such as assessing risks and confirming results.

There are still a few challenges which can hinder the implementation of new technologies. It can be difficult to find time to play around with new technology for companies that pay dependent on the billable hours. Additionally, the cost of the initial investment as well as ongoing tech support and maintenance is a major consideration. These challenges can be overcome through the ongoing collaboration of audit firms, standard-setting organizations and regulators.