Innovative Technologies for Audit Firms

As the whirlwind of technological progress continues, auditing firms face the challenging task of finding ways to harness and apply these tools to their clients for their benefit. Many of these technological advances aren't like this choices, but essential for the future of auditing.

Data analytics, machine-learning and robotic process automation are the most advanced technologies that are making an enormous impact on auditors. These tools allow auditors to get a more complete view of the client's processes, inventory and systems controls that allow them to communicate with boards and management.

Another new tool is blockchain, which could reduce the time of financial transaction clearance from months to a matter of hours. This may allow continuous risk assessments throughout the audit period, rather than just a single assessment at year-end.

Argus, an artificial intelligence (AI)-enabled software, is an example of a technology that is dramatically reducing the amount of manual processing and reviewing required during an audit. It employs machine learning and natural language processing to rapidly scan electronic documents, allowing auditors focus on more valuable tasks such as checking for risk and confirming results.

But there are still many obstacles that can limit the adoption of these technologies. Particularly, in companies that pay their employees based on billable hours, it can be difficult to find time to experiment with new technology tools. The initial expenditure, as well as the ongoing costs of maintenance and support can be substantial. However, with continued collaboration between audit firms and standard setters, as well as regulators, these challenges can be overcome.