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Audit

Game-changing technologies in audit

April 5, 2021 3:15 PM

With innovations in hardware and software rapidly changing how auditors work, keeping up with the latest developments in technology is more crucial than ever — and more complicated.

To help direct your attention, we asked a collection of leaders in the field tell us which single technology they think is the biggest game-changer in auditing.

AI and beyond

artificial-intelligence-ten.jpg
NicoElNino - Fotolia
If I had to pick one technology that is really pushing the evolved audit forward, it’s artificial intelligence in all its varieties. Early on, we’re seeing some of the fastest gains in efficiency and productivity from robotic process automation. But the real promise will come through the learning aspect of artificial intelligence, what’s known as machine learning. With data analytics powered by machine learning, we’re going to see continuous improvement in our ability to spot anomalies in data, to identify risk and to draw insights, and that’s exciting.
— Erik Asgeirsson
President and CEO, CPA.com

Multiple technologies

Technology gap
Sergio Donà/itestro - stock.adobe.com
It’s hard to pick just one. When you look across all the new technology — you’ve got data analytics, AI, machine learning, remote auditing technologies — I think the combination of all of those gets you to game-changer territory.
— Julie Bell Lindsay
Executive director of the Center for Audit Quality

People + technology

artificial-intelligence-two.jpg
Linda Bucklin/AlienCat - Fotolia
The biggest game-changer isn’t a specific technology — rather, it’s how we continue to balance people and technology. The single biggest game-changer is how we harness that combination to create something bigger than the sum of the individual parts. … The magic is when we put human IQ and digital IQ together to create something new — that’s the game-changer.
— Wes Bricker
Vice chair and assurance leader, PwC US

A combination of technologies

Technology gap
Sergio Donà/itestro - stock.adobe.com
I think it’s a combination of all technology — the efficiencies we can gain by automation will be game-changing in freeing up teams’ time, and then looking at audit products and engagement binder-type products that automate and workflow the audit in such a way that information is entered in the technology and it helps you determine the risks and what audit approaches you’re going to take. That’s a technology that’s probably going to be out in the next couple of years. … The game-changer is in the interplay between automating and changing the way an audit is performed.
— Timothy Landry
Assurance services partner and assurance applications technology leader, Marcum

Zoom calls and blockchain

Zoom video
There’s two — I think video is one, and I truly think the distributed ledger is going to be a game-changer once it’s fully embraced by the audit industry.
— Patrick Morin
Principal of information systems and risk assurance, Baker Newman Noyes

Data analytics

data-preparation.jpg
sakkmesterke - Fotolia
If I named one single one today, probably in three years it would be completely different. … I think where the profession is spending most of its time right now is really in that risk assessment, the data and analytics capabilities to really do the transaction-level scoring — that’s probably the most meaningful in the near term for the profession as a whole.
— Christian Peo, KPMG
National managing partner of audit quality and professional practice, KPMG

Data analytics

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Nikita Gonin/ninog - Fotolia
It needs to be all about the data and analytics. I say that because it will help the auditor in terms of improving the planning of their audit to improve quality; it will help with the execution of the audit to improve quality; and then a lot of the visualization capabilities will improve the quality of your communications, not just with the staff in planning meetings, but also with your client … . It’s really a driver of speed and quality.
— Cathy Rowe
Vice president of product management, Wolters Kluwer Tax & Accounting US

Data analytics, then blockchain

data-preparation.jpg
sakkmesterke - Fotolia
It’s a blend, but I really think that blockchain won’t have an impact until later, potentially three to five years out. Until then, data analytics is front and center; it’s consumable, and it’s really able to be transformative and impactful in a short term. Of course, machine learning and AI will bring the data forward to be analyzed, but data analytics is still No. 1.
— Peter Scavuzzo
Partner and chief information & digital officer, Marcum
Audit Audit preparation Audit software Analytics Artificial intelligence
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