Reinventing the Auditors role in 2023

As a futurist ... I have been obsessed with whats next. What does the future hold for us as a race and what impact will technology have on different jobs. While I worked on the future of work initiative for the nation (Futureskillsprime.in) ... there was a constant barage of questions that came my way ... will my job survive? What profession should I consider in the future?

I would share my views on different roles as we march into 2023.

This article will attempt to address the changes that an auditors job is experiencing today and what are potential opportunities to partner with technology to play a more fulfilling game.

Blockchain in Auditing        

Blockchain technology has the potential to revolutionize the auditing industry by providing a secure and transparent way to store and verify transactions. In a traditional audit, the auditor relies on the accuracy of the information provided by the company being audited. With blockchain, the auditor can directly access the transaction data, which is stored in a decentralized and secure manner, reducing the risk of fraud and errors.

One potential use of blockchain in auditing is in the reconciliation of accounts. Currently, this process is time-consuming and prone to errors, as it involves manually matching transactions from different sources. With blockchain, the transactions are recorded in a single, tamper-evident ledger, making it easier for the auditor to verify the accuracy of the accounts.

Another potential application of blockchain in auditing is in the verification of financial statements. Currently, the auditor must rely on the company's internal controls to ensure the accuracy of the financial statements. With blockchain, the auditor can directly access the transaction data and use it to independently verify the accuracy of the statements.

Overall, the use of blockchain in auditing has the potential to increase the efficiency and accuracy of the audit process, as well as increase the confidence of investors and stakeholders in the integrity of the financial statements.

There are several companies that are using blockchain technology for auditing, including:

Deloitte: Deloitte has developed a blockchain-based platform for auditing called "Rubix by Deloitte". This platform allows auditors to directly access transaction data stored on the blockchain, enabling them to more efficiently verify the accuracy of financial statements.

EY: EY has developed a blockchain-based platform for auditing called "EY Blockchain Analyzer". This platform allows auditors to directly access transaction data stored on the blockchain and use it to verify the accuracy of financial statements.

KPMG: KPMG has developed a blockchain-based platform for auditing called "KPMG Chain Fusion". This platform allows auditors to directly access transaction data stored on the blockchain and use it to verify the accuracy of financial statements.

PwC: PwC has developed a blockchain-based platform for auditing called "AuditLink". This platform allows auditors to directly access transaction data stored on the blockchain and use it to verify the accuracy of financial statements.

Overall, these companies are using blockchain technology to develop platforms that can help to increase the efficiency and accuracy of the audit process.

Artificial Intelligence in Auditing        

There are several ways that artificial intelligence (AI) and blockchain technology can be used together in the auditing process:

Automation of audit tasks: AI can be used to automate routine audit tasks, such as data collection and analysis. This can help to reduce the time and effort required to complete an audit, as well as increase the accuracy of the audit.

Detection of fraud: AI can be used to analyze transaction data stored on the blockchain and identify anomalies that may indicate fraudulent activity.

Verification of financial statements: AI can be used to analyze the transaction data stored on the blockchain and verify the accuracy of the financial statements.

Risk assessment: AI can be used to analyze the transaction data stored on the blockchain and identify potential risks to the company, such as potential financial fraud or operational inefficiencies.

Overall, the use of AI and blockchain technology in auditing has the potential to increase the efficiency and accuracy of the audit process, as well as increase the confidence of investors and stakeholders in the integrity of the financial statements.

There are several companies that are developing artificial intelligence (AI) software for audit tasks, including:

Caseware : This company offers an AI-powered data analysis tool that can be used to automate various audit tasks, including data collection, analysis, and reporting.

Corality Financial Group Pty Ltd : This company offers an AI-powered audit tool that can be used to automate various audit tasks, including data collection and analysis.

Alphalake Ai and Services : This company offers an AI-powered audit tool that can be used to automate various audit tasks, including data collection, analysis, and reporting.

KPMG Ignite: This company offers an AI-powered audit tool that can be used to automate various audit tasks, including data collection and analysis.

普华永道 Augmented Audit: This company offers an AI-powered audit tool that can be used to automate various audit tasks, including data collection, analysis, and reporting.

In addition, there are several companies that have developed software for risk assessment, including:

Risk Management Solutions (RMS): RMS is a company that specializes in developing software for risk assessment and management, including tools for analyzing and modeling natural disasters, such as earthquakes and hurricanes.

@RISK Corporation: Palisade Corporation is a company that specializes in developing software for risk assessment and management, including tools for analyzing and modeling financial risks.

SAS: SAS is a company that offers a range of software tools for risk assessment and management, including tools for analyzing and modeling financial risks and operational risks.

IBM : IBM offers a range of software tools for risk assessment and management, including tools for analyzing and modeling financial risks and operational risks.

SAP : SAP offers a range of software tools for risk assessment and management, including tools for analyzing and modeling financial risks and operational risks.

Overall, these companies offer a range of software tools that can help organizations to more effectively identify and manage risks.

The role of an auditor is likely to change in the future as technology, such as artificial intelligence (AI) and blockchain, becomes more widely adopted in the auditing process.

It is expected that the use of AI and automation in auditing will increase in the coming years, leading to the automation of many routine tasks currently performed by auditors. This could result in some job roles becoming obsolete, while others may evolve to focus on higher-level tasks that require more specialized knowledge and expertise.

However, it is important to note that auditors will still be required to exercise professional judgment and critical thinking, as they will need to interpret and analyze the data produced by the technology. In this sense, the role of the auditor may shift from one of data collection and analysis to one of data interpretation and decision-making.

Overall, the future of the auditor job will likely involve a combination of automation and human expertise, as technology and humans work together to improve the efficiency and accuracy of the audit process.

About the author: Arjun worked on the future of work and future of skills for India. He was working for a silicon valley company (EdCast) and their tech was being used by the Government of India for a very strategic initiative for the country - futureskillsprime.in. FutureSkills Prime is a digital upskilling and reskilling initiative by the Government of India on emerging tech like Artificial Intelligence, Big Data and 8 other technologies. He led that initiative for the nation.

Mhymatch is his venture that is addressing the challenge of recruiting talent in the tech space. Finding the right talent is a time consuming process and utilizes expensive resources. Using Artificial Intelligence, Big Data and Machine Learning technologies we help companies through the entire process of recruitment through sourcing, screening, assessing and interviewing.

Our technology also helps companies address the Diversity and Inclusion mandate.

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