Get with the program - how auditors can adapt to technology with ease

‍

The fourth industrial revolution is in full swing, bringing with it several different technological innovations that have the potential to transform the way businesses function.

From artificial intelligence to the Internet of Things, companies quickly adapt to rapidly changing technology to improve operations, increase efficiency, and cut expenses.

Marrying technology and financial reporting is one of the primary challenges auditors face in the Fourth Industrial Revolution.

Businesses are processing financial data with more sophisticated software and artificial intelligence capabilities, introducing new risks and complexities for auditors. Auditors must now master these technologies to assess their impact on financial reporting and undertake effective audits.

Here are a few ideas for how auditors can stay relevant in the fourth industrial revolution:‍

Stay Up-to-Date 

-       Auditors must keep in touch with the latest technology; it's a surefire way to remain relevant. They must comprehend how new technologies are used in businesses and how they affect financial reporting. Auditors should also be mindful of the risks connected with new technology and how to mitigate them.‍

Develop New Audit Techniques

-       To handle the unique risks associated with new technology, auditors must create new audit procedures. Auditors, for example, must be able to audit algorithms and artificial intelligence systems. They must also know how to audit blockchain technology, which is gaining popularity in the financial industry.

Collaborate with Software Professionals 

-  To better understand the technologies utilized in companies, auditors must engage with computer engineers. This partnership can assist auditors in identifying emerging technology risks and developing appropriate audit procedures. Auditors and computer engineers can work together to guarantee that companies operate ethically and comply with regulatory requirements.

Understanding your work environment 

-       Auditors should understand their working world. They must be aware of the industry-specific risks associated with new technology and how these risks may affect financial reporting. Also, auditors must be aware of how new technologies affect business models and operations.

Leverage Data Analytics

-       To improve the efficiency and effectiveness of their audits, auditors must use data analytics. Auditors must be capable of extracting insights from the large amounts of data accessible in today's company environment to identify potential risks and areas for improvement.

Auditors can continue to play an important role in ensuring that businesses operate ethically and comply with laws and regulations.

‍