The rapid adoption of automation and cognitive technologies and
the increased use of an alternative staffing model are two powerful new
trends in auditing. Auditors are becoming savvier, while keeping abreast
of new trends in auditing through technology. Technology is being use
for predictive analytics to virtual reality and more. This is enhancing the
value of the audit for both the clients and key stakeholders. Audit as we
know it may not be recognizable as soon as 2025 due to trends
emerging for the future of auditing. Data management and governance
are of concern because of emerging technology and infrastructure
changes, which may cause transformation, innovation, or disruptions.
Auditors may face challenges with finding staffing that has the skills to
perform the auditing duties, while third-party and vendor management
is likely to be an issue.
The article I came across that deals with emerging technologies in
auditing confirms my opinion that technology in auditing will be a major
factor in the future. The accounting field has been embracing advanced
technologies which offers the opportunity to mitigate the risk of tax
evasion and enhance the auditors’ efficiencies. Big data, artificial
intelligence, and blockchain has benefited auditing by providing the
auditor the ability to analyze an entire population of data for areas of
risk, trends, and anomalies. The use of technology eliminates
constraints that sampling places on an engagement. However, an
auditor’s concern will be to assess any new risks that these emerging
technologies will bring into the business once it has been adopted, and
how management monitors and controls these risks. There must be an
understanding of what the technology will be used for, how the
technology will be used and by whom.
References:
Audit and tax in the context of emerging technologies: A retrospective
analysis, current trends, and future opportunities. (2021). The
International Journal of Digital Accounting Research, 21, 95–128,
34. https://doi.org/10.4192/1577-8517-v21_4
BDO. (2022, February). The Future of the Audit in 5 Predictions.
https://www.bdo.com/insights/assurance/audit-innovation/the-
future-of-the-audit-in-5-predictions
CFO Editorial Staff. (2021, November 1). Accountant Suspended Over
Failure to Spot Fraud. CFO. https://www.cfo.com/accounting-
tax/2016/07/accountant-suspended-failure-spot-fraud/
DataOpsZone. (2019, November 12). How Has Big Data Improved the
Audit Process? https://www.dataopszone.com/how-has-big-data-
improved-the-audit-process/
Deloitte United States. (2021, September 15). The impact of blockchain
technology on audit.
https://www2.deloitte.com/us/en/pages/audit/articles/impact-
of-blockchain-in-accounting.html
Schatsky, D., Muraskin, C., & Gurumurthy, R. (2015, January 27).
Cognitive technologies: The real opportunities for business. Deloitte
Insights. https://www2.deloitte.com/us/en/insights/deloitte-
review/issue-16/cognitive-technologies-business-
applications.html
