Auditing & Technology

Technology is changing the way in which business are conducted. With the rise in global technological advancements, auditing is no stranger. Advancements in data analytics, AI technology, Machine Learning, cloud computing, blockchain and crypto-currency paves way for a better tomorrow. Implementation of these technologies in Audit can not only help in improving the existing audit process, but also further enhance it by adding on efficient technologies.

Companies must ensure to adapt to the continuously evolving and growing technological advancements and keep up with the latest trends. It is very important for business to employ latest technologies in their business so as to further enhance its efficiency.

Certain benefits technology can have on audit can be summarized as follows –

  • Systematic reporting:

Human beings may be prone to committing errors while conducting an audit. Machines however, can avoid these errors through their instruction-driven working techniques.

  • Improving audit quality:

Using emerging audit technology in the audit process could automate many repetitive, mundane tasks and assist with performing analytical reviews on large datasets, thereby improving audit quality and efficiency.

  • Reduced costs:

Automation of audit procedures comes at a cost-saving advantage. Even though, the initial investment costs may be large, its overall long-term advantages overpower its disadvantages.

  • Helps in learning:

Implementation of new technologies helps the employees of a company to learn and expand their knowledge in the field of technology. Businesses must ensure to provide their employees with training in the form of workshops, webinars, seminars etc. It will prove to be of added benefit and may further enhance the morale and performance in the work place.

 

However, it must be noted that advancement in technologies imposes a new challenge for the auditors in the following ways –

  • Limited AI capacity:

Complete implementation of technologies may still require human involvement as AI powered technologies have a limited capacity to perform on their own instructions.

  • Lack of technological knowledge:

Technology is a vast subject. Its knowledge keeps evolving every day and thus, not all business are well equipped with knowledge and expertise in this field. Moreover, some companies may not have the required finances to put into this type of investments. Thus, making it more difficult to equip modern technologies into their audit procedures.

  • Technology is still evolving:

Technology in itself has a lot of potential for growth and improvements. In terms of audit processes, it is even further behind and has a long way to go. So, implementing technologies in audit procedures requires a lot of research and development.

 

Thus, it can be concluded that Audit and Technology can go hand in hand provided that the business keeps up with the fast-growing technologies and take measures to provide employees with required training and knowledge with respect to technological advancements.