The Wayay Current Technology Is Transforming Into Auditing
Using Big Data and analytics, auditors can now verify large amounts of data. As a result, they are able to produce more accurate economic reports. Is also creating more relevant audit reports by identifying various risks related to fraud and business conduct. This is how auditing is changing.
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Consider the following points to know how technology is applied in auditing:
What is audit?
An audit is an organization’s financial report, which is published as an annual report. This report is usually made by someone who is not directly associated with the organization. The financial statements include:
- Balance sheet
- Income statement
- Ownership statemen
- Cash flow statemen
- Summary and explanatory notes of various important accounts
The way technology is changing the current audit
The use of big data, sophisticated analytics and visualization provides important insights into business and auditing. This has an impact on how an audit is planned, conducted and published. For example, in the past, revenue appropriations were verified by examining a few samples of revenue transactions. Now, instead, auditors identify inconsistencies in transactions with specific customers or business units in order to capture business inconsistencies. So they can easily analyze all the revenue related transactions.
Data Analytics
How we audit and what we find out from the audit, analytics are changing these two things. With the help of data analytics data can be collected, analyzed and presented to the clients accurately from all the datasets of huge size. In short, with the help of analytics technology, auditing has become much easier.
Cognitive technology
Cognitive technology is also known as ‘artificial intelligence’. With this technology huge amount of data can be examined very quickly and accurately, which is not possible for human beings. It can also detect various errors in the work of the organization. At the same time it can show how systems, operations, different functions or different processes of control can be further improved.
Will technology take the place of man?
Accounting and auditing requires a variety of considerations. Although we can scan a huge amount of data with the help of the device, we are far from the stage where the device can understand all the entries in the account without the help of man. People still need help to prepare and upload the data.
At present audit firms are constantly increasing the use of technology to develop their auditing methods. As a result, the work of accounting is constantly changing.
