In today’s fast-paced economy, information technology has had a significant impact on Auditing and Accounting by enabling business firms and organizations to develop and further use computerized systems for storing and recording their financial transactions. With the help of several crucial improvements and advancements, information technology is transforming the auditing and accounting industry both quickly and profoundly. The auditors can now seamlessly identify fraud and operational business risks, generate financial reports, and tailor their approach accordingly to deliver better results.
It is a matter of fact that yes; while technological advancements are being introduced at an unprecedented speed, several areas are helping the shift to audit and accounting automation while coming up with new ways of performing an audit. So, let’s make ourselves familiar with how information technology is transforming the industry of auditing and accounting.
Artificial Intelligence (AI) –
Artificial Intelligence, robotics, and cognitive sciences offer great help in the automation of repetitive and complex processes and tasks. AI holds immense power in providing extreme accuracy, which further helps in increasing efficiency and reducing operational costs. Such emerging technologies play a significant role in supporting the transitional role of today’s auditor from a process-centered practitioner to a critical strategic partner. In this case, it would be right to say that AI shall never replace auditors, but auditors using AI shall replace the ones that aren’t using it.
Cloud-based computing like Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) refer to a type of internet-based computing providing shared processing data and resources on-demand to computer devices. It enables the auditors to perform testing tasks and auditing from any location in the world and also provides them with an ability to deliver information, reports, and working papers via the cloud. Without any second thoughts, cloud-based computing has indeed opened up a new and efficient way for the auditors to work well with their clients. As a result, auditors can spend more time engaging with their clients and solve their business issues.
Audit Software –
Since its early stages, audit software has indeed come a long way now. Programs offer a high degree of accuracy by reducing the margins of error. Furthermore, new programs also help in streamlining the audits by making the entire process more effective and efficient. Nowadays, both auditors and business owners are embracing the new audit software technology for preventing issues with the stakeholders and avoiding costly mistakes.
Mobile Applications and Mobile Accounting –
With the proliferation of smartphones, almost everyone across the globe has access to unlimited information and business data. To bridge the gap between clients and firms, auditors are now taking advantage of mobile device connectivity. Moreover, new mobile applications are also offering help to professional service firms by performing internal functions, including sending invoices and receipts, submitting timesheets, and creating expense claims.
Social Media Platforms –
Many firms nowadays use various social media platforms like Twitter, LinkedIn, and Facebook regularly to engage with their already existing and potential clients while expanding their brand reach simultaneously. Therefore, along with traditional marketing strategies, professional service firms must realize the importance of integrating social media marketing into their long term digital marketing goals and business development plans.
The rapidly evolving relationship between information technology and auditing implies that auditors need to understand what impact does technology have on their business and how can it be utilized for improving Corporate Law Compliance and operational efficiencies, achieving regulatory management, guiding management decisions and Legal Opinion, supporting financial reporting and accounting, and ultimately increasing revenues.