https://data-audit.net/2020/09/15/how-to-audit-transactions-using-data-managment-applications/

As the technological revolution continues to advance, audit firms are confronted with the task of utilizing these technologies to benefit their clients. A lot of these cutting-edge technologies aren’t just options, but essential to ensure the future of auditing.

Data analytics, machine-learning and robotic process automation are the most advanced technology tools that make an enormous impact on auditors. These tools help auditors gain a deeper perspective of client processes, inventory and system controls that allow them to communicate with boards and management.

Another new technique is blockchain, which can reduce the estimated time of financial transaction clearance from months to hours. This could allow continuous risk assessments throughout the period of audit, instead of only a single evaluation at the end of each year.

Argus, an artificial intelligence (AI)-enabled software, is one example of a technological advancement that is drastically reducing the amount of manual processing and reviewing required during an audit. It employs machine learning and natural language processing to rapidly scan electronic documents, allowing auditors focus on more valuable tasks such as checking for risk and confirming results.

There are still a few challenges which can hinder the implementation of new technologies. It is particularly difficult to find the time to explore new technologies in companies where compensation is based upon hourly billables. The initial expenditure, as well as the ongoing costs of tech support and maintenance, can be significant. These issues can be solved by a continuous collaboration between audit firms, standard-setters and regulators.