How Audit will change in next 5 years?

Transparency in Audits - How audit is conducted vs How it is presented to the Stake Holders

A gap exists between how an audit is conducted and how the data is presented to the stakeholders of the Organisation. Audit is Trust which boosts the Investor’s confidence.

A Reporting window will be developed and activities conducted on the broader aspects will be reported to the shareholders. The status on the complete audit procedures will be presented on a real-time basis.

Embracing Technology

Audit is conducted on Sampling Basis. The New Artificial Intelligence driven data software will be emerged wherein the sample data will be auto picked based on the data fed to it. These software shall assess the risks and measure it accordingly.

Audit Automation

Complete Audit Automation is possible with Robotics in Audit Process. Random data can be picked as and when it happens in the software and immediate actions can be initiated in due process.

For Example: Automatic emails can be sent to Department Heads to confirm the Employee Reimbursements exceeds Rs. 1lac. The Department heads shall confirm the details in Checklist mode containing information on Nature of Expenses, Approving Authority, Purpose of Expenses, Authenticity of Documents etc.

The Automation process will keep a check on various parameters defined and act accordingly without bias.

Data Analytics for Auditors

Artificial Intelligence driven Data Analytics Tools shall bring in Data Analytics on various business attributes and help auditors in forming proper opinions. The Data Analytics will help in identifying the Trends and gather suitable information of audit evidence.

Audit based on Evidence and not on opinions.

With technological advancements, Audit Automation, Big Data and Artificial Intelligence the audit will be soon evidence-based rather than assumptions based.

We are entering into an era where the overall audit dimension is getting redefined. Stay hungry stay focused and be prepared embrace change.

About : Founder of Efintech Inc and Vidhyanidhi Consulting labs. We are the next generation Accounting firm, with focus of new technology to be implemented in the Accounting and auditing to bring in transparency and reportability.