Bacoconsultants
This is a huge challenge, particularly in audits, where the pace of technological change, specifically the move from sample testing to 100 % population testing, and from historic testing to real-time testing, is spearheading the need to revisit the audit approach in an unprecedented manner.
Technology will drive down the time taken to conduct an audit, as testing becomes more automated and conducted on a real-time basis. Views were expressed around the need to develop new methods for calculating audit fees based on the technological resources used in the process and the value added by audit teams who derive insight from the data. There will be opportunities for the firms to develop more forward-looking assurance services, helping clients to manage risk and drive growth.
Technological advances which could lead to the commoditization of the audit, and even the disintermediation of audit firms by other technology players, were considered potential threats of which audit firms need to remain vigilant. Technology is directing changes in the way clients run their businesses, changing their business models and processes.
Auditors need to stay ahead of these changes in order to relevant advice and support services.
In response to this audit firms are both recruiting and partnering with a variety of technology experts. Audit firms need to invest in digital initiatives, including Al, blockchain, cyber security, and developments in data capabilities. These initiatives across multiple technologies will equip them to expand their assurance services to deal with the new technology-driven risks that their clients face and safeguard their digital assets.