A few conventional auditing duties take up many auditors' time if the information isn't organized and accurate enough. Some of the audits are prone to errors, while others are simple rule-based mechanical operations that are accomplished quickly.
Artificial intelligence, cloud computing, data analytics, robotic process automation, and various other technologies have all impacted the external and internal auditing processes. They provide statistics with a new dimension, making it easier to derive new strategic insights that will assist auditing firms and their clients in making decisions. These technologies provide auditors with a deeper understanding of the organization and assist them with manual operations. There is no substitute for their knowledge-based judgment, commercial and risk understanding, and analytical and critical thinking.
Automation Technologies in Auditing Industry
The automation of numerous operations previously handled manually is the primary technique to incorporate artificial intelligence into the auditing process. The responsibilities include:
- Feeding data.
- Establishing tests to assess the dataset.
- Writing scripts.
- Remember all the rules so that the correct ones may be applied when needed.
Other advantages of Artificial intelligence include comprehensive knowledge of ledgers, Accounting, and spot inconsistencies depending on hazards.
Robotic Process Automation (RPA)
During the auditing process, robots automate operations such as copying & pasting financial data and reconciling financial data. RPA is most effective when it comes to extracting insights from disparate data sets. RPA can automate business activities that are pre-defined by the user and run across many software applications. Confirmations, reconciliations, email creation, and email automation are just a few of the significant elements in the audit process that RPA may help with.
They help to store and access the data remotely. The data can be stored as required and increase the efficiency of the Audit due to ease of access to the required documents. The cloud technologies also provide flexibility in accessing the audit documents on multiple devices and save time to find appropriate files. However, companies must carry out risk mitigation measures to safeguard the cloud's highly sensitive data and information.
Intelligence Process Automation (IPA)
It's a technology ecosystem that includes RPA, AI, data analytics, the internet of things, and more. It is used to automate non-repetitive, non-standardized, non-structured, and non-rule-based operations. To create insights for auditors, it analyses data patterns, does extensive analysis, interacts with humans, and adapts to the situation and temporal changes.
Impact of Automation in Audit
Here are some of the possible impacts on the various businesses in the United Arab Emirates:
- Analytical technologies that enable auditors to study and analyze massive amounts of data to get deeper insights and analytics into a company's operations are few known impacts of automation in auditing. It aids in transforming auditing's fundamental concept and primary assumption, which formerly centered on the audit of a data sample, to the current testing of entire data sets.
- Time and money are saved as a result of increased efficiency.
- For consistent & accurate data, integration and orchestration are required. Organizations may use an automation platform to integrate data from several sources and provide total visibility, ensuring that no information is lost.
- Ensure that compliance and regulatory requirements are met. Auditing is frequently performed as a manual, distinct operation. All information is gathered, and a process is mapped out as a workflow and automated through a centralized platform, so one can be confident that all actions in the process are thoroughly audited and captured.
- The use of an automated audit process instead of manual processes promotes faster completion of audit steps and the development of continual insights. It also lowers corporate costs and improves the efficiency of business processes.
- Auditors can keep a constant eye on corporate trends and processes to inspect high-risk operations. Errors are quickly recognized and corrected because a continual auditing procedure promotes uniformity and efficiency in the result creation process.
- Auditors have more time to focus on non-standard processes requiring judgment since electronic technologies simplify and faster processes.
Jaxa Chartered Accountants help companies operating in the different UAE Emirates with bookkeeping, accounting, payroll management, auditing, and tax. Our comprehensive procedures integrated with advanced technologies benefit our client companies in all accounting and auditing-related aspects. Please Contact Us with any questions regards our processes. We'd be delighted to assist you!