Embracing a digital, technology-driven mindset for audits

We live in an era in which technology is reshaping how services are performed, and auditing is no exception.

1. Technology integration in audits: Auditors and entities already leverage off-the-shelf tools encompassing audit data analytics capabilities and artificial intelligence. As these tools further evolve, they will continue to present opportunities for auditors to seamlessly integrate technology into their audit processes. To make the most of technology, the auditor’s understanding of the entity’s IT maturity is critical. This understanding facilitates robust risk assessment and helps optimize the auditor’s use of technology when performing risk assessment procedures.

2. Value of technology in audits: Even the simplest technology can enhance the value of audits. It is crucial to recognize that technology is not intended to replace humans but rather to augment their abilities. Although evaluation, analysis, and judgment remain vital aspects of auditing, technology empowers auditors to focus on higher-level skills and critical thinking by leveraging computing power to analyze data available and automating certain tasks. By embracing technology, auditors can dedicate their time and expertise to areas requiring the auditor’s professional judgment.

3. Growth skills for next-gen auditors: To thrive in a technology-driven audit landscape, next-generation auditors will want to prioritize specific growth skills. Among them are a deep understanding of accounting and auditing standards, embracing emerging technologies and mastering effective client and team interaction. By honing needed skills, auditors can effectively navigate technology integration and position themselves as valuable assets in the evolving audit profession.

4. Early action and long-term benefits: Technology continually changes, and early action by auditors leads to long-term benefits. Embracing technological advancements and incorporating audit data analytics will help auditors gain audit efficiencies, enhance audit quality and provide valuable insights. However, successful implementation of technology challenges auditors to think differently about audits and to be open to new or enhanced approaches.

In today’s dynamic business landscape, auditors manage a wide range of challenges, from complex financial transactions to evolving regulatory requirements. Embracing a digital, future-focused, and technology-driven mindset is crucial.