Innovation is vital in this business world that is constantly changing where information is the currency. The accounting industry is experiencing a revolution with the ways audits and other processes are carried out. The latest technologies, such as Blockchain, artificial intelligence (AI) Data Analytics and robotic procedure automation are changing processes, providing better outcomes for clients.
Auditors can now provide more insightful information due to the ability to process and organize large volumes of data that are complex at a rate previously impossible. The use of advanced analytical tools enables auditors to spot unusual transactions, latent patterns or other issues they might otherwise overlook, and tailor their risk assessment procedures accordingly. These tools also help to spot potential future issues and to predict the company’s performance.
Similarly, the use of automation and software that is specialized reduces the manual work of reviewing and processing. Argus is a good example. It is an AI-enabled software that utilizes machine learning and natural language processing to swiftly search electronic files. Deloitte audits use it to speed up electronic document reviews, allowing them to focus more on tasks that are high-value, such as the assessment of risk and confirming results.
However, despite these benefits, a number of barriers have been identified that prevent the full implementation of technology in the audit process. Particularly, research has revealed the fact that a mix of person, task and environmental factors influence the use and application of technology in audit. This is reflected in the perceived impact on the independence of the auditor and the lack of clarity regarding the regulatory response towards the use of technology.