What Is Investment Banking?
July 31, 2024As the technological revolution continues, audit companies have to face the challenge of utilizing these technologies to benefit their clients. Many of these innovative technology aren’t just options, but essential for the future of auditing.
The most advanced technology www.data-audit.net/2023/05/31/what-is-business-intelligence tools that are making a significant impact on the auditor are machine learning, data analytics and robotic process automation. These tools allow auditors to gain a better understanding of the client’s processes, inventory and system controls that they can share with boards and management.
Blockchain is another new tool that could cut down the time required for clearing financial transactions to only one or two hours. This could enable continuous risk assessments during the period of audit instead of only one assessment at year-end.
Argus, an artificial intelligence (AI)-enabled software, is an example of a technological advancement that is dramatically reducing the amount of manual processing and reviewing that is required during an audit. It employs machine learning and natural language processing in order to efficiently search electronic documents. This lets auditors concentrate their attention on more valuable activities, such as reviewing risks and confirming results.
But there are still many obstacles that could hinder the acceptance of these technologies. Particularly, in companies which pay employees according to billable hours, it can be difficult to find time to test new tools for technology. The initial investment, as well as the ongoing costs associated with tech support and maintenance, can be substantial. These issues can be addressed with the continued collaboration of audit firms, standard-setters and regulators.
