In the fast-paced world of business where information is the currency innovation is crucial. The accounting industry is witnessing a transformation in the method of auditing, using new technologies like blockchain and artificial intelligence (AI), data analytics and robotic procedure automation transforming processes, resulting in more efficient and effective results for clients.
Auditors are now able to provide more insightful insights because of the capability to process and organize large volumes of data that are complex at a rate previously impossible. The use of more sophisticated analytical tools allows auditors to identify unusual transactions, latent patterns, or other issues they would otherwise overlook and adjust their risk assessment processes accordingly. These tools also help to identify potential future issues and also to make predictions about a company’s performance.
Similar to that, the use automation and specialized software reduces manual review and processing. Argus for instance, is an AI-enabled software that makes use of machine learning and https://data-audit.net/2020/03/16/management-board-software-for-audits natural language processing to efficiently interrogate electronic documents. Deloitte audits use it to speed up electronic document reviews, allowing them to focus more on high-value activities like assessing risk and verifying results.
Despite these advantages, there are a few obstacles have been identified to hinder the full utilization of technology in the audit process. Particularly, research has demonstrated the fact that a mix of person, task and environmental factors impact the use of technology in audit. These include the perception of the effect on independence as well as a lack of clarity regarding the regulatory response to the use of technology which could affect the motivation to use it in the real world.
