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As the technological revolution continues, auditing firms have to face the challenge of harnessing and utilizing these technologies to the advantage of their clients. Many of these new technologies aren’t choices, but essential for the future of auditing.

The most modern technology tools that are making a significant impact on auditors are data analytics, machine learning and robotic process automation. These tools enable auditors to gain a greater understanding of the client’s processes, inventory and systems controls that they can communicate with boards and management.

Another new technique is blockchain, which can cut down the time to clear financial transactions from months to a matter of hours. This could enable continuous risk assessments to be carried out during the audit period, rather than a single year-end assessment.

Argus is an example of a program that makes use artificial intelligence to cut down on the amount of manual review and processing that is required during an audit. It uses machine learning and natural language processing to rapidly scan electronic documents and allows auditors to concentrate on more valuable tasks such as reviewing risk and confirming the results.

However, there remain a number of obstacles that may hinder the application of these tools. Particularly, for companies where compensation is based on billable hours, it may be difficult to find the time to play around with new tech tools. The initial investment, along with the ongoing costs associated with tech support and maintenance, can be substantial. But, with continued collaboration between audit firms regulators, standard setters and audit firms and regulators, these issues can be overcome.

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