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As a consequence of COVID-19 restrictions, the abrupt shift to working and learning online has undoubtedly increased our reliance on technology. The rapid adoption of technology as means of remote communication and collaboration has had a significant impact on the auditing profession.
Although existing technological infrastructure allowed auditors to continue to conduct their work online using data analytics, Skype meetings and cloud-based software to provide services to clients, key issues regarding future advances in auditing technology have been brought to light.
To conduct audits remotely, clients are required to upload their documentation and data, which is managed and secured across virtual networks using cloud software. As the use of cloud-based technology increases, it is essential that audit firms implement effective cybersecurity measures to limit the risk of breaches of confidential client data.
Another implication of remote auditing is the availability and integrity of data provided by clients. Quarantine restrictions have caused major disruptions to businesses, thereby significantly impacting their financial reports. Recently, the Australian National Audit Office sent letters to its clients to emphasise the importance of correct financial reporting requirements. Many clients had a “tendency” to blame all shortcomings and problems on COVID-19, making it crucial for auditors to assess whether COVID-19 was the true cause for decreasing client revenues and underperformance.
Whilst technology has provided the necessary tools to work from home, auditors are left with the task of making challenging judgements in order to sign off on their client reports. The ASX and company regulators have extended the reporting deadlines to cater for these difficulties.
Despite these issues, it is safe to say that COVID-19 has had a significant role in accelerating the uptake and development of technology and automation within the auditing profession.
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