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February 20, 2024
Delve into the trends of tomorrow shaping the auditing world’s future landscape.
Strenuous processes, complex modus operandi, and tedious, ever-changing rules and regulations make auditing a chore. It’s like a Monday morning without a shot of caffeine. However, with tech giants finding an AI-driven solution for almost everything (why hello, ChatGPT), building transparency, mitigating risks, and navigating complicated financial and accounting problems has become more accessible.
With big sharks in the field innovating, yes, we’re talking about PwC. Yes, they won the Digital Innovation of the Year award at the International Accounting Forum & Awards for their transformative collaboration with Microsoft; we can’t help but applaud their AI intervention for the audit world. They aim to make it human-led but tech-driven. With their predictive analysis approach, PwC has walked toward a simplified audit process, leaving zero to little room for error and ensuring it is as seamless as possible. The change may look like one in the product itself; however, it is that of the mindset. It is that of adapting to changing times, accepting the integration of data and technology to aid efficiency in processes, and taking a step toward a digital, burden-free future.
The world has come a long way; lost are those days when auditors were vigilant guardians working relentlessly to maintain a balancing act in a world where numbers reign supreme. Today, we live in a digital-first world that has created complex business environments, big data, and cloud culture. This advancement of technology is here to stay and shake up the traditional landscape of auditing and assurance services. Never again will you find a company staffing desk with men and women clattering away at their keyboards in an attempt to fill in Excel sheets with accurate financials. From AI-powered audits to blockchain-backed transparency, a new, tech-heavy era where innovation meets integrity is upon us—but truth be told, are auditors ready for what that means? Let’s look at what the future looks like for the world of auditing, one that’s upon us in the years to come.
Almost like a flame that spreads like wildfire, AI has set the digital world ablaze with its astonishing growth. The auditing industry is on the brink of a makeover, with AI making noteworthy changes. Not only is AI shaping the future landscape of auditing, but this paradigm shift and integration of AI and automation has also led to increased efficiency and reduced risks of fraudulent data breaches. AI also helps automate mundane tasks such as data entry, allowing auditors more time to focus on intentional functions that will facilitate growth and development. With access to confidential client information, it is of utmost importance for auditors to mitigate risks to the best of their potential, and the infusion of AI into the process makes this task achievable and all the more precise. Hence, next-gen auditors must amp up their digital acumen as technology has become and will remain a core skill of the profession.
The cloud is an essential tool that will become a permanent member of the auditor’s arsenal.
The shift to the cloud is here to help auditors have a uniform data source, thereby allowing seamless collaboration across the globe. The consistency of the platform ensures data organization, a streamlined audit process, and reduced time spent on collating and corroborating numbers and data accuracy. Cloud solutions, with their data encryption feature, ensure cyber protection of the highest quality, something auditors have been in search of for a long, long time. All the perks of using the cloud will only ensure the adoption of this technology into the auditing process in the years to come.
Another important factor contributing to change in the audit industry is the burgeoning significance of environmental, social, and governance (ESG) considerations within corporate frameworks. This increased importance is compelling businesses to prioritize disclosing their ESG performance…drum roll, auditors are incoming. Auditors assume a pivotal role in ensuring the accuracy and credibility of these disclosures. What this means for the audit and assurance industry is that auditors must have significant knowledge about these rules and regulations and must stay up-to-date with critical information within the industry. This will help ensure greater transparency and lesser risk, making this skill much sought-after.
An issue that’s been prevalent in the auditing industry is that of staffing. Auditing and assurance services have almost grown to become like the last pair of jeans on the sale rack that nobody wants to buy. It has also become like that corner on your bookshelf that receives no TLC anymore. Whether it’s the lack of interested candidates or that one department in the company that one forgets to nurture, auditing and assurance services are slowly and steadily growing to become the silverfish of the company, eating into resources. Outsourcing auditing services is a commonly explored and adopted phenomenon and is gaining popularity rapidly. This trend helps audits be way more efficient, seamless, and less of a back-burner task for in-house staff. Resources can be redirected to an area of the business that needs them more, leading to improved and optimal growth.
In conclusion, audit professionals must stay ahead by embracing and envisioning tech that has yet to be considered; we promise it’ll all be worth it. Investors and regulators are craving insights beyond financials. They want to understand a company’s pulse, including non-traditional risks not even discussed a decade ago, such as climate change and cybersecurity breaches. Auditors are expected to be quite like palm readers; taking on prevention is better than a cure approach, predicting clients’ future one potential threat at a time.
Technology is revolutionizing the assurance and audit process like never before. Competent auditors must embrace emerging tech, envisioning ways to elevate the audit value and process for key stakeholders. The takeaway? Stay agile—what’s trending today may be outdated tomorrow.
Want to know more? Escalon has helped over 5,000 companies across a range of industries improve their compliance regarding internal controls and streamline processes. Talk to an expert today.
With 6 years of experience in copywriting and social media management across genres, Devayani's heart lies with weaving words into stories and visuals into carefully crafted narratives that’ll keep you wanting more. She carries with her, her pocket notebook, a trusted confidante that goes with her wherever she goes, and scribbles down into it anecdotes on the go. Her secret weapon for keeping all things copy interesting! Apart from writing, Devayani is huge on travelling. You'll find her booking her next adventure while she's on her current one. And while on those adventures, you'll find her devouring true crime books one after the other. Whether it's a low down on a recent case or one that occurred 70 years ago, she can cook up a story narration you'll never forget.
Accounting & Finance
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