Technological Advances and the Audit Practice

As we wade into the depths of continuous technological advancement, a range of automation has surfaced that could alter the way we live, work, and relate to one another. These changes could transform every industry around the globe. Within the scope of the audit practice, computerized devices have the potential to allow an auditor to interpret larger volumes of data related to a company’s financial information. Audit firms are seeing the impact of this reliance on technology within specific areas such as Artificial Intelligence (AI), blockchain, and data analytics and how these automations are impacting the audit profession.

Technological Impacts to Auditing

There has been discussion in the past that continued advancements in technologies might render the audit profession outdated. Recognizing that this is nowhere near the case and instead actively harnessing new technologies to serve and enhance the functionality of the audit, the audit profession, regulators, standard setters, companies, and stakeholders in general are allowing audit firms to adapt to the changes in technology and use it to their advantage in their processes.

Improvements to analytical capabilities, such as testing data sets rather than samples will allow auditors to test audit evidence in real time.  AI, simply put, is integrated to get machines to compute mundane tasks that would normally require human input, such as using advanced machine learning to extract information from entire large electronic documents. Lastly, improvements to blockchain with widespread digitized automation using coded records and transactions are assisting auditors with transitioning the focus from transactions that occur within a year to auditing the terms of a smart contract.

The Baird Audit Group

Since 1927, The Baird Audit Group has worked to implement technological advances in order to enhance the audit by automating time-consuming tasks which are rote in nature. Utilizing artificial intelligence, these automated systems could work in conjunction with a client in order to transfer and compile data automatically, something previously done by hand. We are available to assist you in applying these advancements to quicken the return on your audit. Our offices are located at the Columbia Road Professional Centre, 4210 Columbia Rd., Bldg. 10 in Augusta, GA, or feel free to contact us via our website, or by calling us today at 705-855-9500.