We all agree that an Audit is very necessary and valuable to a business, but the year 2020 brought many changes as to how a business was conducted. This also changed how the management of a business conducts its Auditing and Accounting functions. Due to the pandemic, it has become extremely difficult to go to a business and conduct auditing services personally.
The pandemic created many difficulties but also created many opportunities for businesses. Many of these changes have now become a part and parcel of how audit is conducted of a business and will be followed in the future.
Below we will be discussing three main changes which have become important for all the auditors and accountants to have if they want to stay relevant in the present business environment.
- More stress on Virtual Audit
The present situation of the pandemic has made it very difficult for the auditors to conduct any kind of audit in person. The stress more and more is given to conducting audits virtually. This means that the auditor does not need to be physically present in the company and conduct an audit. This type of audit will assist the business to find out the flaws and bottlenecks in the business and will also help in allocating and utilizing all the resources of the business.
Many a time conducting an audit of the business can cause hurdles for the business. When conducting audits virtually there is no hindrance to the business activities. This can prove to be very beneficial for businesses and this virtual method can be applicable to all businesses in the future.
- More use of Technologies
Before the pandemic, we were seeing new technologies in the field of business. The coming of the pandemic has accelerated this process as almost everything is now dependent on technology. As the level of interaction has gone down the people depend more and more on technology. We have also seen a rise in the use of e-commerce.
New software is being developed which will assist the management of a business to conduct audits and accounting in a proper and detailed fashion. As this software will not require much human interaction, these will be perfect in the current business scenario.
- Adaptability to New Situations
The worldwide situation created due to the pandemic was unseen by everyone and people were not prepared for it. Now the businesses have slowly acclimatized to the present situation and have and have started to take the present situation into account. In the present situation, the people need to maintain social distancing and people prefer to work from home. This change in the working style will be a huge factor in deciding which audit firm will be chosen by the management for the audit.
This will also force the auditing firms to accept and use various techniques so that they can still conduct an audit of the company and also follow all the rules and regulations which have been set for combating the pandemic.
These three changes are huge and should be followed by auditors all around the globe from now on. If these changes are not addressed by the auditors then the auditors face the risk of becoming obsolete and will slowly run out of business. To stay relevant, it is absolutely necessary that the auditors stay updated and follow all the rules and regulations.
If you are looking for auditing services that will follow all the necessary rules and regulations regarding the pandemic then you can look into the various services provided by JAXA Chartered Accountants. JAXA is one of the best audit firms in the United Arab Emirates and provides a number of different services which will assist in the growth and development of a business.
These services include Auditing and Assurance Services, Accounting Services, VAT and Tax related services and many others. To know more about the services provided by the experts at JAXA Chartered Accountants, feel free to Contact Us. We will be happy to assist you in the business journey.