An audit exercise need not be an arduous task. Any company staff can prepare for an audit exercise with a bit of accounting knowledge. Organizations using complex accounting software, sound accounting principles, audit procedures make it easy for CPAs to maneuver their finances.
Going into the future, competing with artificial intelligence breakthroughs remains the single greatest threat that CPAs face. Today, accounting software has evolved into supercomputers capable of handling multiple touchpoints in the supply chain and distribution channels. Automation in inventory management has rendered workers jobless as machine learning has become better and efficient than workers.
Auditors’ primary duty is to present an accurate and fair view of a company’s financial statements. An accurate and unbiased view comes from making a confident and precise judgment about its affairs based on its numbers. It is factual that machine learning and breakthroughs in financial technology will play a critical role in shaping auditing processes in the future. However, the fastest machines are still unable to provide an independent and objective assurance over information other use to make management decisions.
CPAs must realize that today’s auditing standards require updating to factor in present-day financial technology. Dohler and Will Bible of Deloitte & Touche LLP assert that auditors’ role is fundamental and will continue to revolve around people’s professional skepticism while remaining independent and objective and using sound judgment. Despite advancements in technology, there is that one call that only auditors can make, which boils down to human experience.
Keeping a keen eye on client’s automation processes will place you ahead of the curve. Auditors need to develop new procedures as companies are building new quality controls in their automation. Further, auditors must begin to leverage robotic process automation in tasks, such as combing through data in a general ledger. Using data analytics to assess extensive population data will enable CPAs to focus on risks identified and provide added value.
It is crucial to anticipate changes that come with rapid and subsequent leaps in technological advancements that will affect the auditing profession and remaining in tune with it. Auditors will continue to provide assurance and confidence in data when people make financial decisions based on data irrespective of its source.