Mindset Shift to Digital Audit Trends - The world has changed, digital has changed it
Over the last ten years, we have seen a massive shift towards a more digital way of life and ways of working. Digital audit trends like cloud digital which is different to the cloud, are emerging as we progress through the fourth industrial revolution, the era of digitalization.
Life at home is digital.
Streaming services have replaced traditional TV, we watch on demand entertainment provided by services giving instant access to shows, music, and games. We are very rarely far away from our mobile phones which not only connect calls but also allow access to social media, camera, videos, and any number of apps to assist your daily life.
Shopping can be conducted online, and we no longer have to wait weeks for delivery – in fact if the delivery is greater than 24 hours it can impact our purchase choices.
Working from home is now part of life.
In recent years the ways in which we work and the ability to work anytime anywhere has become more standard in practice. We learned to adapt quickly to new ways of working and adopted technology at pace to give us the means to deliver effectively whether from the office or home.
Life at work should be digital
Companies like Amazon have reset our expectations for shopping, digital has made it a different experience which clients now expect. In the working environment we need to adapt and strive to get ahead of the curve to ensure client expectations are met.
Professional service sectors and the accountancy profession need to lead from the front in the adoption of digitalization. This will allow you to:
- Evolve your current business model,
- Create new services.
By enhancing existing business models and services through automating what is done and creating more efficient and valuable ways of achieving these outcomes firms can build a new digital, data driven service.
Digital audit trends advancing audit services through technology.
Facing additional pressure and external scrutiny the accounting profession is responding to demands for change following high profile frauds and business failures. Technology has frequently been cited as a critical factor in advancing the profession to address these pressures.
Digital transformation is the response to the changes digital technologies have and will continue to cause, in society, daily lives and business.
The Digital Audit is transformational:
- It’s a new way of conducting the audit.
- It delivers unique client deliverables.
- It enhances audit quality.
- It integrates progressive technologies and augments intelligence into the methodology and workflow
Future role of the Auditor
By fusing progressive technologies, such as data analytics and artificial intelligence, directly into the audit engagement workflow a well-designed digital platform can be created fostering new levels of audit quality.
This way, the right technologies are delivered at the right point in the engagement and auditor learning curves are reduced. Auditors are better prepared to apply these technologies in ways that enhance the quality of their work.
This can be applied to multiple digital audit focuses including:
- Risk assessment,
- Designing responses to risk,
- Substantive testing,
- Digital audit methodology,
- Safeguards and quality checks.
In summary, automated audit technology is applied to instantly create standardized workprograms, and augmented intelligence is used to perform initial analyses of data. With the routine, administrative, and mechanical aspects of the audit becoming automated, internal audit teams no longer need to spend their early careers performing tedious manual tasks. Instead, they are empowered to think critically and move more quickly into higher-value activities. Emerging digital audit trends challenge staff to think differently and are finally able to break free from a same as last year checklist mentality to the audit, changing the perception of what it means to be an audit professional.