how to audit transactions using data managment applications

As the whirlwind of technological advancement continues, auditing firms face the difficult task of figuring out ways to harness these technologies to their clients' benefit. Many of these advanced technologies aren't just options but are essential for an audit's future that is successful.

Machine-learning, data analytics and robotic process automation are the most advanced technology tools that make an enormous impact for auditors. These tools allow auditors to gain a deep knowledge of the processes of clients, inventory, and the system controls. They can then communicate this information to management and boards.

Another new technique is blockchain, which can cut down on the time of financial transaction clearance from months to just a few hours. This could enable continuous risk assessments to be made during the audit time period rather than a single year-end assessment.

Argus, an artificial intelligence (AI)-enabled software, is an example of a new technology that is dramatically reducing the amount of manual processing and reviewing that is required during an audit. It employs machine learning and natural language processing to quickly search electronic document files. This allows auditors to focus their attention on more valuable activities, such as the assessment of risks and verifying results.

There are still a few obstacles that hinder the use of new technologies. Particularly, at companies where compensation is based on hours billable, it can be difficult to find the time to test new technology tools. The initial investment, along with the ongoing costs associated with maintenance and support for technology can be significant. These issues can be solved by the continual collaboration of audit firms, standard-setting agencies and regulators.