https://data-audit.net/2020/09/15/how-to-audit-transactions-using-data-managment-applications/
As the rapid pace of technological advancement continues, auditing firms face the difficult task of figuring out ways to harness and use these technologies to their clients for their benefit. A lot of these cutting-edge technologies aren’t choices, but essential for a future in auditing.
The most technologically advanced tools that are having a major impact on the auditor are machine learning, data analytics and robotic process automation. These tools enable auditors to get a more complete view of the client’s processes, inventory and system controls that they can communicate with management and boards.
Blockchain is yet another emerging technology that could cut down the time required for clearing financial transactions to only one or two hours. This could enable continuous risk assessments to be conducted during the audit period, rather than a single assessment at the end of the year.
Argus is an example of a software that makes use artificial intelligence to decrease the amount of manual review and processing that is required during an audit. It makes use of machine learning and natural language processing to speedily search electronic document files which allows auditors to concentrate on higher-value activities such as the assessment of risk and verifying results.
There are still a few challenges which can hinder the implementation of new technologies. Particularly, at companies which pay employees according to hourly billing, it might be difficult to find the time to try out new tools for technology. Also, the cost of initial investment and ongoing support and maintenance for tech can be a major factor. These issues can be resolved through the ongoing collaboration of audit firms, standard-setters and regulators.
