From relying on only human decision making. I do think this is a little concerning as automated
systems are fraught with error or possible tampering (potential fraud). But I do think there are
many of these technologies that have greatly assisted with the fields of auditing and accounting. I
don’t think they are all bad necessarily but we as a society need to keep in mind the limitations of
computers. And to not solely rely on these technologies. It is very important to ensure there are
proper checks and balances in place to avoid error or fraud.
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.
Discusses many different new and emerging trends in auditing and accounting. The trends include
changes in auditing related to cryptocurrencies, less complex entities, Covid-19, and internal
auditing. The most concerning trend to me is the changes in internal auditing shifting more and
more towards artificial intelligence. "It believes artificial intelligence and advanced analytics tools
will become an integral part of internal audits for large and smaller organizations in all sectors."
(Murphy, 2022) Although automation can be a great movement forward towards lightening the
workload in an effective manner, technology isn't perfect so if there are not proper controls in
place then this could spell trouble for many companies.
References
Murphy, A. (2022, April 26). What New Trends in Auditing and Accountancy Should Students Know
About? Masterstudies.com. https://www.masterstudies.com/news/What-New-Trends-in-Auditing-
and-Accountancy-Should-Students-Know-About-4203/
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
Hoos hangi, S., & Sibdari, S. (2022). Human-Machine Hybrid Decision Making with Applications in
Auditing. In Proceedings of the 55th Hawaii International Conference on System Sciences.
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