Where Is Technology Taking Auditing and Accounting?
Technology is paving the way for the newest developments in auditing and accounting. It seems as soon as one cutting-edge concept is developed another one is already emerging. This type of advancement has not been seen in the industry in decades.
The Professionals Weigh In
The entire sector is interested in learning more about how technology influences the financial reporting industry. There is much to learn from professionals such as Ryan Teeter, Clinical Assistant Professor of Accounting Information Systems at the University of Pittsburg. His background in technology and accounting is the ideal vantage point to learn from.
Teeter says that many advances are due to hobby projects that are started by auditors. From there, it grows into a more complex system that is used throughout a bigger portion of the workplace or the industry as a whole. The most popular systems created are those that streamline and automate routine tasks.
Benefits of Automation
Not only does automation add an extra layer of value to the audit, but it has other advantages as well. Teeter says, “It also means that they’re helping reduce their workflow and their workforce because a lot of the routine tasks can be done by a computer as opposed to a staff accountant.”
There is always the concern that automation may lead to the need for fewer people. However, while automating some of the tasks could be beneficial and time-saving, there is still a need for human judgment and decision-making. The technology may be able to get the analytics, but there will still be a need for people to evaluate it.
Overview of Technology in Auditing and Accounting
We see technology become a helpful asset in auditing and accounting. It can be used to streamline some of the processes without totally disregarding the need for accountants and auditors. Technology should be considered a tool and not a replacement for the professional. However, it will be critical for professionals to learn and adapt to new technologies as they become more and more incorporated in the financial sector.
For more audit related news, check out Current AICPA Guidelines on Prior Period Audits