Survey shows technology’s ability to improve audit quality

A survey of ACCA members and affiliates about their understanding of terms such as artificial intelligence (AI), machine learning (ML), natural language processing (NLP), data analytics and robotic process automation (RPA) revealed technology’s ability to renew processes that improve audit quality and increase efficiency. According to a press release, the report reveals how technology is also a catalyst that will help shift the focus of the audit process from a retrospective view to one which is prospective. It also assesses the technologies having most impact on the audit profession as we know it today. Drawing on the existing research and exploring the views of leading practitioners, it provides an understanding of how the changing business environment is shaping technological change in auditing – summarising how different technologies could be expected to impact its future and what this means for auditors as people.

ACCA’s report Closing the Expectation Gap in Audit found that 55 per cent of the general public across 11 countries believe that if auditors followed the requirements of existing auditing standards, they could prevent corporate failure. Furthermore, 70 per cent believe that audit should evolve to prevent corporate failure. Although some may reasonably argue that such demands are unrealistic, technology may help satisfy the public demand at least partly, in future.

Maggie McGhee, executive director – governance at ACCA, said, “Technology offers the ability both to improve the quality of audit and to add value to it; audit is moving from being a reactive, backward-looking exercise to a proactive, predictive, forward-looking one, working in real time. As such, it provides an opportunity to help clients by providing timely insights.” Even in its traditional context, technology now offers an opportunity to produce higher-quality audits that better serve for their existing purpose. Nonetheless, if AI and related technologies are fully implemented, it could raise questions about the auditor’s independence. Maggie McGhee said, “We hope audit and technology provide insights for both businesses and auditors themselves on how they may adapt most effectively in the face of significant change.” Simon Grant, group executive, International Development and Advocacy & Professional Standing at CA ANZ, said, “If we can anticipate the possible impacts of technology and harness it so we understand the benefits to the accounting profession, technological change could then be such an empowering opportunity rather than a challenge for our profession.”