Innovation is essential in the fast-paced world of business in which information is the currency. The accounting sector is experiencing a paradigm shift in the way audits are conducted, with new technologies like blockchain and artificial intelligence (AI), data analytics and robotic procedure automation revolutionizing processes, resulting in more efficient and effective outcomes for clients.
Auditors can now provide more insightful insights due to the capability to process and organize huge amounts of complex data quickly at a speed that was previously unimaginable. Improved analytical tools can help in identifying unusual transactions, latent patterns or other issues that might otherwise be missed and allow auditors to adjust risk assessment procedures accordingly. These tools can also assist to spot potential future issues and to predict the company’s performance.
Similar to that, the use automation and the use of specialized software is reducing manual review and processing. For instance, Argus is an AI-enabled document analysis tool that utilizes natural language processing and machine learning to rapidly interrogate electronic documents, and is utilized by Deloitte auditors to accelerate electronic document review and allowing more time to focus on high value activities such as the assessment of risk and confirming findings.
Despite these advantages However, a variety of obstacles have been identified that hinder the full adoption of technology in the audit process. Specifically, research has highlighted that a confluence of person tasks, environmental and other factors influence the use of technology for audit. This includes the perceived impact on the independence of the auditor as well as the lack of clarity on the regulatory response to the use of technology.
