Auditing is subject to constant change, regulation, and technological advancements. The sweeping global impacts of Covid-19 created what is arguably the greatest disruption for audit in the history of the profession. Increased audit complexity, remote working, digitalization, and the constant push for audit quality and efficiency are drivers for audit firms to change the way they operate today.
Helping more than 200.000 auditors across the globe, DataSnipper learned that great knowledge is stored in this audit community. To bring this knowledge into the light, DataSnipper asked audit experts across the globe about their 'main challenges in audit transformation’.
The Voice of the Auditor report is an inspiration and must-read for every audit firm that wants to transform their audit procedures through innovation and technology. This report is written for audit leaders across the globe.
Covid-19 impacted the fundament of the audit; communication with the client and collaboration within the audit team. Advancements and implementation of technology has significantly helped in bridging this gap.
Auditors love tools and technology. On average, audit firms have more than 30-50 audit tools in place. This overwhelming number of tools leads to audit tool fatigue; meaning that adopting and learning these new tools is more exhausting than productive. Most importantly, new automation tools do not deliver value if they are not implemented correctly in the day-to-day operations, or when auditors simply haven't mastered the right skills and mindset to work with these tools.
Challenge II: Repetitive audit tasks
Almost every auditor focuses on new and innovative technology and automation. The human effort, related pain and potential value to solving the repetitive audit tasks is simply very high. Audit firms are constantly looking for new automated and standardized audit workflows, while maintaining a flexible way of working to meet the individual needs of clients. Call it the 'standardization versus agility paradigm'.
Challenge III: The regulatory paradigm for innovation
Over the last decade, audit regulations are becoming stricter. New regulatory demands increase the workload for audit firms. This leads to the increased need for audit quality and efficiency, which forces audit firms into a challenge of adopting new ways of working driven by technology and automation. However, while expectations of the regulators raise, the technological answer of audit firms also brings great advantages to auditors.
Challenge IV: Embracing technological change
The audit profession is subject to constant change. The explosion of technological advances helps auditors to increase the efficiency and quality of their audit services. However, new technology only succeeds and adds value if the technology is embraced by the entire team. Without their buy-in, technology is nothing more than an innovation show-off. In the end, innovation is not about technology, it's about changing people.
Challenge V: Audit talent retention
When young auditors start their careers, they are looking at their careers with full excitement. At the same time, they have a romanticized idea in their head about what auditing in their first years actually is. Starting as an auditor - in larger firms especially - means you start climbing a long and predefined corporate ladder. At the bottom of this ladder, there is lots of manual and repetitive audit work to be done. This manual work is not challenging cognitive work. It can actually be boring sometimes. Highly talented young auditors leave firms for this or worse, the audit profession.
DataSnipper is on a mission to make every auditor in the world more successful and impactful.
Based in Amsterdam, DataSnipper is an intelligent audit platform within Excel that accelerates the speed and quality of your audit procedures by 10x. DataSnipper software is specialized in assisting auditors in executing tests of details, tests of controls, walkthroughs and financial statement procedures. The software’s fundamental technology packed in Excel drives more than 10 automation features. DataSnipper helps more than 200.000 auditors across 75+ countries.
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