As with the entire Finance and Accounting sphere, the future of auditing too is changing, reshaped by innovative solutions that enhance both the scope and efficiency of audit services.
In the past, auditors focused on detecting fraud and ensuring that agents reported the true financial situation of businesses. Over time, the role of auditors has expanded to a more comprehensive approach to financial oversight by providing guidance on reporting and organizational controls in place.
Today, in the age of technology, auditing has much more potential.
Here are 4 audit technologies that are positioned to change the audit industry as we know it and are already growing in popularity internationally:
1. Cloud-based Auditing
Cloud-based auditing facilitates secure collaboration among global teams, enabling seamless communication and document sharing, regardless of location.
67% of accounting professionals say they prefer cloud accounting to traditional methods; due to the flexibility and scope it offers.
2. Artificial Intelligence (AI) and Machine Learning
AI and Machine learning can automate routine tasks including data entry, significantly improving accuracy and efficiency.
A staggering 78% of audit and finance professionals confirm their firms are investing in AI to maintain a competitive advantage, and this figure is projected to rise over time.
By automating routine tasks, firms can free up valuable resources for strategic initiatives, increase efficiency and reduce costs, enhance output quality, and deliver greater business value through comprehensive testing, more frequent audits, and continuous monitoring.
3. Advanced Data Analytics
Advanced data analytics enables comprehensive analysis of entire transaction sets, rapid outlier detection, and risk assessment automation, leading to higher quality audits according to a report on “The power of advanced audit analytics” by Deloitte.
Additionally, these tools provide valuable insights for management and boards, such as trend analysis and benchmarking, which support better decision-making.
4. Outsourcing
Outsourcing audit functions is another avenue becoming increasingly common.
Even though the outsourcing model existed for decades, outsourcing audit functions are gaining traction currently due to two main reasons: The lack of specialized talent and the increased cost of wages.
A survey by the Chartered Accountants Australia and New Zealand (CA ANZ) found that the vacancy fill rates were below 67 percent for the positions of Internal Auditors and External Auditors.
Simultaneously, Grant Thornton stated that “In the last few years, the cost of maintaining professional wages for anyone within the internal audit function has increased between 20 percent and 40 percent”.
Outsourcing solves both these problems by offering skilled resources at a significant cost advantage. Additionally, audit firms can leverage time zone differences to optimize the use of limited resources like high-end software beyond the conventional 8 hours per day and scale their teams dynamically to meet fluctuating demands. The reason for the popularity of this model lies in how firms can maintain control over the final outcomes while benefiting from the expertise of external providers.
The trends highlighted in this article—increased use of technology, a focus on data analytics, and a shift towards outsourcing—reflect the changing needs of both audit firms and their stakeholders.
More and more companies are moving towards these strategies, to create better value for their customers, drive business growth, and gain a competitive edge in the industry.
Our team of auditors at H Connect International are ahead of the curve, always.
We are proficient in meeting the changing demands of the audit industry and utilizing emerging trends and technology.
Book a free consultation with us to see how we can help your audit practice embrace change and drive growth.
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