Technologies to Assist Auditors and Challenges That May Appear from These
Technologies to Assist Auditors and Challenges That May Appear from These – Auditing is complicated process. The whole processes require auditors to find evidence, validate, and analyze the data. They need to have skills to verify and analyze the data that they got so later they can work well in auditing process. Traditionally, auditors should do these all by themselves. However, advancement of technology will provide them with great assistance. They do not need to handle all of the works alone. They can use the tools that will make works more effective and efficient.
As what is mentioned above, auditors need to handle various kinds of data. They will be overwhelmed by these when they have to handle great numbers of data. They need to collect and sort through these large data. After that, they need to verify and even analyze each of them. These take time and this can be exhausting even for senior and expert auditors. However, now the handling of data should not be conducted manually. Spending much time and effort to read each of the data will not be necessary anymore and sorting out each of them is not necessary. Artificial intelligence or AI exists now.
Development of computing technology has created the AI that will be significance supports to analyze the data. Collecting, arranging, and sorting the data will not need manual works anymore. Auditors can trust the AI tools to help. AI brings automation that will surely make the work more efficient. There are tools for document readers where auditor only need to scan the document and later the data will be scanned and made into digital formats so they are ready to use. Then, automation and AI can be used to read the data and do some basic analyses that later can make the job faster.
Next, there is blockchain technology. This is powerful technology that is developed in recent years. This can be very relevant and helpful for auditors because this can provide assistance in validation and verification. Frauds can be avoided and prevented by the blockchain technology. Blockchain technology can be used by companies to record assets and various transactions. The blockchain can be very transparent and secure. Auditors can ask the clients to use the blockchain technology to deal with various records and data. Even, transactions can be much safer with the smart contract. This is part of the main features offered by blockchain technology. With the smart contracts, it will be hard for parties to break the contracts, especially the ones that involve large amounts of money.
Cloud technology also exists that can make the work of auditors much easier. One of the main functions offered by the cloud technology is access to work remotely. Now, auditors do not need to always meet clients directly in case distance becomes the problems. They can communicate and discuss things remotely. It is not only for communication, but all data can also be accessed and processed remotely with cloud computing. These are the great ways that will surely save time and energy. When it is combined with the blockchain and even AI with its automation, works of auditors can be much easier and it is possible to work more efficiently and effectively.
These technologies are surely powerful. These make the jobs much easier to complete. Manual works can be reduced with the tools and technologies. Things that can be mentally and physically tiring can be reduced with the technology. However, it does not mean that all things will become simpler. In this case, auditors should have concerns regarding the advancement of technology. One of the concerns is capability to use them. The tools can be helpful, but it will only happen when auditors can use them. When they are not able to utilize each of the tools well, then these are just ornaments and even things may become more complicated. Thus, auditors should start to embrace the new technologies. They cannot close their eyes toward the advancement of technologies. They need to know and learn how to utilize them.
Then, other concerns are related to data privacy and security. These two aspects cannot be taken lightly. Tools can be useful but those mostly will use the internet access. There are many parties who are trying to hijack the data and these are real threats. There are many cases related to the data privacy and securities become very important. Thus, you do not need to know how to use the technology, but you should also be aware of potential risks in using any of them. Moreover, auditors always work with data and these can be sensitive data related to transactions and other information. The data must be protected so clients will not be at disadvantage in case some security issues occur. The example can be found in the use of cloud technology and blockchain. Data security can be at risks and there can be possibilities of hackers and other people to track the data and even steal them. Auditors should have preventive actions and even solutions to solve the issues.