As the whirlwind of technological progress continues, audit companies face the daunting task of finding ways to harness and utilize these technologies for their clients to their advantage. Many of these advanced technologies aren’t just an option they’re essential to the future of auditing.

The most cutting-edge technology tools that are having a major impact on the auditor are data analytics, machine learning and robotic process automation. These tools help auditors gain an in-depth understanding of the client’s processes including inventory, processes, and the system controls. They can then communicate this information with management and boards.

Another new technique is blockchain, which could reduce the time to clear financial transactions from months to just a few hours. This could enable continuous risk assessments to be carried out during the audit period, rather than a single annual assessment.

Argus, an artificial intelligence (AI)-enabled software, is an example of a technological advancement that is drastically reducing the amount of manual processing and reviewing that is required during an audit. It employs machine learning and natural language processing in order to audit and its types objects methods efficiently search electronic documents. This allows auditors to focus their attention on more important activities, such as assessing risks and confirming results.

There are still some obstacles that could hinder the adoption of new technologies. Particularly, at companies where compensation is based on billable hours, it can be difficult to find the time to test the latest technology tools. The initial investment, as well as the ongoing costs of maintenance and support for tech, can be substantial. However, with continued collaboration between audit firms regulators, standard setters and audit firms and regulators, these issues can be overcome.