Technology has been evolving at a much faster pace in the last couple of decades. This fact has left its impact on every aspect of our lives, so it wasn’t a surprise when the digitisation train hit the auditing world. Conducting audits has been affected by the fast pace technological tools are being evolved at. Data analytics will not only change how auditing is being done, but it will change the entire look and shape of audits in the future. Here are some of the dramatic changes that technology is about to make to the auditing world.
Artificial Intelligence Is Taking The Lead
The whole idea of cognitive technology can be summarized in Bill Gates’ words when he said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”
AI refers to machines doing tasks that require “intelligence” somehow. This automatically gives an impression of learning, sensing, reasoning, and following a certain a pattern to execute the required task. The idea of using AI to process data and analyze them when used in auditing will change the entire game. The impressive part about AI isn’t only how they can mimic a human mind when it comes to copying a certain strategy of handling a task, but rather how machine learning allows the chance of developing new strategies to deal with unexpected errors. This will give auditors the chance to dig deeper into companies’ data.
Suggested Read: Introduction to Artificial Intelligence (AI)
Data And Predictive Analytics
Embracing Artificial intelligence and machine learning in data analyzing techniques can lead to predictive analytics. The name gives it away, using probabilities will allow machines to make predictions. This idea can sound like it’s been taken from a sci-fi movie but it’s the near future that we will be living in, in no time.
Auditors can use this tool to identify certain patterns and point out an irregular outcome that differs from the expected. While all these technologies are being discussed and soon will be in a trial and error, many might get tax penalties out of nowhere. Whether innocent or guilty, these matters are best to be left to professionals.
It wasn’t a long time ago that auditors were chained to their desks in front of a desktop computer, fax machines, and depended merely on physical mail. Fast forwarding to today’s world where you can rarely spot an auditor without at least two smartphones.
Technology has allowed auditors to be able to take their work back home. This fact can be a double-edged weapon considering the sensitive information at risk. When smart digital hubs came in, they allowed the opportunity for auditors to work outside the office without putting the data at risk.
Data Is The Heart Of The Economy
While technology is moving in a much faster pace, audits are now trying to catch up. How we are handling data is being evolved, researched, and rethought to come up with new techniques and technologies. It’s just a matter of years before our roles turn to just honorary roles where we only watch and approve.
This digital wave is definitely changing the requirements for auditors from a basic economy and auditing degree to a much wider range of skills needed to deal with this fast-paced world.