Before understanding the reasons for which companies must stay in track with technology while conducting audit, knowing a few ways in which the companies can embrace technology will perhaps make things clearer.

Statutory Audit

Adopting new technologies

In various audits, the procedure involves the collection of minute data from the web for training and benchmarking the models of Artificial Intelligence. However you can collect about ten times more data within the same time when you leverage newer technologies such as RPA or Robotic Process Automation. Apart from this, new cloud tools facilitate the building of newer models without writing separate codes.

Data structure investments

Today, the technical auditors spend much less effort for data conversion acquisition, and standardization, which is the best example of a well-governed system. It eliminates the opportunity of wasted efforts towards the acquisition of data and generates more capacity of genuine testing. It is one of the best solutions for the top audit companies in India and helps in the prevention of major financial scams that are on the rise.

Role playing the crime

One of the realistic techniques on which the firms rely today is paying someone to break the security of the system. Believe it or not, it is going to work. Similarly, while conducting the audit of a trading company, try to think of ways you would adopt to break the rules and build a better safeguard to prevent fraud.

Team building work

For the business auditors, it is imperative that they understand the business analytics. Similarly, the team of the analytics must also understand the basics of the business. The test of the audit must be designed and developed in association with the data scientists for the businesses to determine if the test resolves the requirement. 

Thing to know

From the big to the small financial scams in this country about which you hear so often, it is necessary to understand how the banking staff surpasses the basic system controls and allowed some of the most reputed business entities to continue with the scams for so many years. The general perception is that fraud detection is not the primary responsibility of the auditors. What the auditors usually need to do is to express their opinions about the fairness of the business in terms of the cash flow, balance, and the profits in compliance with the general principles of accounting. Although the auditors of the best audit firms in India must make specialized inquiries related to the fraud, but they may not suspect every move and motive of the business, which is largely a part of forensic audit.

After the biggest national and financial scams in this country, people have started raising questions about the nature of the audit and how it must be based on technology to prevent these scams. The technological advancements pose a serious challenge to the internal audit techniques today regardless of the size of the organizations. While the firms need to identify the risks that are a part of these technologies, what they can do in turn is to adopt the same technologies to improve the auditing functions. No replacement is going to come easily, but there is no harm in trying for the best.

Viewpoint of the experts

According to the experts, the adoption of the new technology is going to make the process more expensive and reduce the profits as well, but the system is going integrate the auditing procedure greatly. When statutory audit in India creates partnerships and positive relationships with other functions such as risk management and compliance, the cost can be shared and analytical tools can be synchronized with the system to make things more effective within the organization. The task may be stupendous and it may appear challenging to several firms today, but it is going to reorganize or remodel the entire professional internal audit. Fortunately, it will also provide the opportunity lot of people to earn the new skills.

Challenges faced by the firms

Several audit firms do not have the depth to conduct audit procedures in large firms especially those that are carried out in the complex IT environments. Many businesses have divided opinions when it come to choosing between smaller firms engaged in the practice of internal audit and the large international firms that charge higher for the task. Compared to the smaller and the larger firms, there are fewer mid-sized firms conducting the procedure of internal audit, so the decision is going to be difficult initially.

Certainly, you cannot expect the change to come overnight, and things might turn towards better gradually. It is virtually impossible to conduct large audits without big data, IT controls, and analytics. Firms may need new skills, better tools, and a lot of new investments, which may be out of reach for the small-sized firms. It is extremely important for the audit firms to understand the management of the businesses, the motives, and the challenges they face to measure the earnings and the financial positions. All this leaves the audit firms with one big question whether it is at all reliable to follow the principles of accounting for audit any longer?

The smaller firms may have to reposition themselves to create new tools and implement better strategies of auditing that involve higher level of research, analysis, and development. Furthermore, the companies in the government and the private sector must be willing to pay more to make the standards of auditing fairer and better.