Over the last decade new accounting information technology has flooded into the market, providing accountancy firms with an opportunity to improve the efficiency and profitability of their business and deliver better outcomes for their clients. For auditors the data-driven audit can be transformational, allowing them to re-direct their focus from time-consuming, manual tasks to more effective data analysis, predictive insights, and fostering their drive to provide trusted advice to their clients.
There’s no doubt it’s gaining traction. In 2020 three of the Big Four pledged a combined investment of $9 billion to develop technology to re-shape the way they interfaced with clients. And when Accounting Today quizzed a group about their approach to technology, 73% reported that there was an “urgency” at their firm for tech adoption.
But is clever technology for everyone? Is it perhaps a square peg that doesn’t fit easily into the round-shaped tech stack that a firm might currently use? That’s certainly one of the criticisms I’ve heard bandied about, but I’m very much in the camp that a business culture that resists digital change impedes opportunities for growth and development.
“If it ain’t broke, don’t fix it” is not good enough in 2023 when competitors are integrating new platforms to increase efficiencies, adding value for clients, and building in scalability. Read Jeff’s blog on the “same as last year” mentality for his thoughts on this.
But of course, it’s important to ensure that integrating audit technology is going to deliver results – that it’s fit for purpose and is cost-effective. Every firm is different, and auditors must do their own research. However, for firms serious about investing in audit technology, I believe there are six key questions they should ask themselves: