Innovation is crucial in the business environment that is fast-paced, where information is the currency. The accounting industry is experiencing a revolution in the method of auditing, with new technologies like blockchain and artificial intelligence (AI) and data analytics and robotic process automation transforming processes and providing more efficient and effective outcomes for clients.
The ability to swiftly process and organize huge amounts of complex data at a speed previously unimaginable is enabling auditors to deliver more insightful insights than ever before. Advanced analytical tools can aid in identifying unusual transactions, latent patterns or other issues that would otherwise be overlooked and allowing auditors to modify risk assessment procedures to suit. These tools also help to identify potential future issues and also to make predictions about the performance of a business.
Automation and specialized software are also reducing the amount of manual processing and reviewing. Argus is a good example. It is an AI-enabled tool that utilizes machine learning and natural language processing to swiftly search electronic documents. Deloitte audits use it to speed up electronic review of documents, allowing them to focus more on tasks that are high-value, such as reviewing risk and verifying results.
Despite these advantages, there are a number of obstacles that hinder the full adoption and use of technology in auditing. Research has demonstrated that a mix of factors, such as person working, task, and the environment, can impact the use technology for audit. This includes the perceived impact on the independence of the auditor and the lack of clarity regarding the regulatory response to the use of technology.