If the start of 2022 is a good indication, this year will be another one of transformation, from how we work and the need to embrace all aspects of innovation, to where we work and how we manage hybrid work environments, and what we work on in order to efficiently deliver optimal value with limited resources.
Inside our laptop bags, whether those are slung over our shoulders or shoved under the desk in our home offices, we carry with us many hard-earned lessons from the last two years. Being able to apply those for the benefit of our clients and audit teams is an unmistakable silver lining that underscores the profession’s solution-oriented approach to new obstacles.
We’ve learned that we need to find new, creative ways to perform our work and to collaborate with others in very disparate work environments. As the workday has become more fluid, it is evident that sometimes the most effective way to work with others is to be empathetic of everyone’s personal journey — whatever challenges and successes in people’s work and personal lives shape how they show up that particular day.
Many times in audits, there are the clients, the consultants and the auditors. But over the last two years, these titles have broken down, and we have been able to connect at a level beyond having a working relationship. Pandemic limitations and the adoption of video calls forced us all to open our homes to each other in an unusual way, which has led us to create stronger relationships and connections.
These last two years have also shown the market that location is not everything when it comes to selecting your service provider. Many conversations now begin with “Who is the right provider?” and follow with “Where are they located?” as we have proven we can be efficient and equally supportive in a virtual world.
Remote audits actually have allowed teams to increase efficiencies in the execution of the work, which is crucial because we have experienced increases in overall demand and emphasis on a timely and efficient audit.
As the virtual work environment has minimized many geographic limitations, firms have benefited from a wider resource pool when staffing engagements. This has resulted in teams being more specialized in the client’s industry or sector, creating more value to both the audit and the client. It also has given clients and engagement teams more flexibility in their schedules so that work can progress when someone is unable to be in the office.
Working remotely also has forced audit teams and clients to be more intentional with in-person interactions. This has created efficiencies that were likely lost in the days of being on-site every day for the duration of the audit.
Does all of this mean remote audits can take their place on the list next to the wheel and sliced bread? Not yet. Although firms and clients generally have succeeded in adapting to pandemic-related challenges, the market still indicates considerable desire and demand to have the personal touch and in-person collaboration.
To that end, some audits will return to being on-site, while others won’t. There won’t be a one-size-fits-all approach. Generally, because audit teams have risen to the occasion over the last two years, clients understand — and appreciate — that they have more options in their service model. Firms are adjusting their approach and expectations in response to this.
While we don’t expect things to go back to how they were before the pandemic, three types of engagements are coming into focus. Certain clients are asking for the team to be on-site most of the time, as was the pre-pandemic custom. Others are seeking a hybrid approach in which teams have on-site touch points throughout the audit but also conduct the work virtually. Other clients now prefer a fully virtual audit.
Within each classification, audit teams and clients are embracing the inherent permission to be creative in the execution and completion of their audit. This continues to drive digital transformation in the audit profession.
Technology has become integral to the audit process as firms leverage artificial intelligence and machine learning more. The many benefits to this approach for both the client and the audit team will only fuel momentum for greater adoption.
Firms are able to deploy their resources more strategically, increasing utilization during busy season — which we all know is especially crucial in 2022. Technology allows audit teams to increase testing to obtain further support and comfort in their procedures.
By leveraging technology to support transaction-level testing, the base audit work is done in a more efficient and timely manner, expediting the audit process. By initially taking a step away from the transaction-level work, new technology tools enable auditors to assess trends, financial results and the market in a more holistic manner through an industry-specific lens.
Data analytics can provide clients with valuable information that can be used to create highly effective analytics to reduce certain substantive audit procedures while gaining better insight into key risk areas, which increases both the efficiency and effectiveness of the audit.
The good news, overall, is that we are now much better positioned to utilize new tools and techniques to drive efficiency, collaboration and flexibility for our clients and our teams. We have more to do, but an increased focus and awareness on the quality of our interactions, both in person and virtually, combined with our focus on innovation, has helped us to become even better business advisors to our clients.
