Content area
Full Text
Keywords
Information technology, Auditing profession, Documentation, Knowledge management, Risk management
Abstract
In the future, paperless audits will become commonplace as audit clients increasingly shift to paperless systems and audit software is developed that allows auditors to complete most procedures on-line. To audit online systems, auditors will have to incorporate on-line audit software as their primary audit tool and gather evidence electronically. Assesses the current impact of technology on the audit process, and discusses the future implications of technological trends for the auditing profession. More specifically, provides a summary of how information technology has impacted audit planning, testing, and documentation.
Introduction
In future years, paperless audits will become commonplace as audit clients increasingly shift to paperless systems and audit software is developed that allows auditors to complete most procedures on-line. At present, computer disk storage is more efficient, and the number of transactions conducted electronically is rapidly expanding. Technologies such as electronic data interchange (EDI), image processing, and electronic file transfer (EFT) will make traditional audit trails disappear. These technologies will greatly change the nature of the audit process, which traditionally has relied on source documents in paper form. To audit on-line systems, auditors will have to incorporate on-line audit software as their primary audit tool and gather evidence electronically. The use of such technology will free the auditor from many mundane audit tasks and allow the auditor to use this time for higher level tasks, such as understanding the client's business and assessing various risks.
The purpose of this paper is to assess the current impact of technology on the audit process, and to discuss the future implications of technological trends for the auditing profession. The paper first provides a summary of the information gathered on the current usage of technology by audit firms. Next, observations on how technology has impacted audit planning, testing, and documentation are discussed. The paper concludes with implications for all auditors on how advancements in technology will improve the efficiency and effectiveness of future audits.
Interviews and literature review
Information technology professionals from three large international accounting firms were interviewed. The focus of these interviews was to learn which audit technologies are currently being used, and to investigate their future plans for technological applications. In addition, one of...