In the fast-paced world of business where information is the currency innovation is vital. The accounting industry is witnessing a transformation in the method of auditing, with new technologies like blockchain, artificial intelligence (AI) and data analytics and robotic process automation transforming processes, resulting in more efficient and effective results for clients.
The ability to swiftly process and organize huge volumes of complicated data at a speed previously unimaginable has enabled auditors to provide more insightful insights than ever before. Improved analytical tools can help in identifying irregular transactions, patterns that are not apparent or other issues that could otherwise be overlooked and allow auditors to adjust processes for risk assessment to suit. These tools also help identify future issues and provide predictions regarding the performance of a business.
Automated software and specialized programs are also reducing the amount of manual processing and reviewing. For example, Argus is an AI-enabled document analysis tool that utilizes natural language processing and machine learning to swiftly analyze electronic documents. It is being used by Deloitte auditors to help speed up electronic document review which allows them to concentrate on the most valuable tasks, such as reviewing risk and verifying results.
Despite these benefits however, there are a variety of obstacles that hinder the full adoption and use of technology in auditing. Research has demonstrated that a combination of factors, including people work, environment, and task that can affect the use of technology in audit. These include the perceived 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 implement it in practice.