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4 questions to drive your audit firm’s evolution

Thomson Reuters Tax & Accounting  

· 5 minute read

Thomson Reuters Tax & Accounting  

· 5 minute read

The accounting and audit profession is undergoing significant changes as a result of the rapid advancement of technology. While some have expressed concerns that automation may replace human auditors, the reality is that technology is here to enhance the profession rather than replace it. Automation tools can help streamline processes, reduce inefficiencies, and free up human auditors to focus on higher-value tasks. 

So, then, how do audit firms evolve to make sure they are prepared for when the right technology can help them prosper?

To remain competitive, audit firms must invest in the four key areas: people, processes, technology, and planning.

This includes building a culture that embraces change and new technologies, investing in the necessary training to keep teams up to date with the latest skills, and evaluating processes to identify opportunities for improvement.  

To help your firm get started, ask yourself about these key four areas: 

Processes: How do you currently identify opportunities for process improvement? 

It’s vital for audit firms to evaluate their processes and identify opportunities for improvement. Standardization can help firms save significant time and reduce inefficiencies.

If you find yourself doing things differently from one partner/manager to another, you might be costing yourselves significant time savings that can be achieved through standardization and modernization. Streamlining processes through automation can help firms deliver higher-quality audits in less time. 

People: How can you ensure that your firm’s culture and leadership will boost retention? 

With the changing landscape of the workforce, audit firms must evolve to attract and retain top talent.

Firms should focus on building a culture that welcomes change and new technologies. This includes investing in the necessary training to keep their teams up to date with the latest technologies and skills needed for the future. 

Technology: What is the current cost of your audit workflow?  

Audit firms must evaluate their current technology solutions and the impact they have on their productivity and bottom line. This evaluation should involve a thorough assessment of their existing systems, including the administrative overhead and limitations of their current audit workflow.

This will enable audit firms to identify areas where new technologies, such as paperless audit software, can be implemented to enhance productivity and streamline communication. 

Once you identify the cost of your current audit workflow, ask yourself a follow-up question:  

What is the impact that a cloud-based system or other emerging technologies could have on improving your firm’s productivity, communication, and bottom line?  

Adopting a cloud-based system or other emerging technologies can have a significant impact on improving an audit firm’s productivity, communication, and bottom line.

Cloud-based systems can streamline workflow by providing easy access to shared documents and real-time collaboration, reducing the need for manual communication and enhancing team collaboration.  

These systems can also help firms to automate repetitive tasks, freeing up auditors to focus on higher-value tasks, such as data analysis and client communication. Additionally, emerging technologies like machine learning and AI-based data analytics can provide more efficient and accurate data analysis, enabling auditors to deliver more valuable insights to clients. 

Planning: When was the last time you evaluated your audit planning and methodology? 

Planning is a critical component of an effective audit, and it is essential for audit firms to regularly evaluate their audit planning and methodology. While it may be tempting to follow the same methodology used in previous audits, it is important to avoid getting caught up in the “same as last year” mentality.  

By taking the time to reevaluate and reimagine their audit methodology, audit firms can identify areas where they can improve their efficiency and effectiveness. This can involve developing a dynamic and flexible methodology that can adapt to the changing audit landscape, including the adoption of new technologies and changes in regulatory requirements.   

By adopting a more agile approach to audit planning and methodology, audit firms are evolving by delivering a more efficient and effective audit, providing greater value to their clients while also maintaining a competitive edge in the industry. 

Embracing automation: The path to audit firm evolution 

With a dynamic and flexible audit methodology, firms can adapt to the changing audit landscape and deliver a more effective audit, positioning themselves for future success. Proactive evaluation of technology solutions and staying abreast of emerging technologies can help your firm stay ahead of the curve.  

Ready to discover more about the future of audit and gain insights into what your firm should prioritize when navigating the evolving audit landscape?

Dive into our comprehensive white paper, 4 Keys to the Future of Audit, to stay ahead of the curve and proactively address the challenges of the new audit era. 

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