As someone who has been deeply entrenched in the accounting profession for decades, I can confidently say that the move towards data-driven audits is one of the most transformative shifts I’ve witnessed.  

And I’m not alone. In the recent episode of The Boomer Briefing podcast – I chat to my good friend Gary Boomer about data, technology, AI, and the need for a shift in mindset. 

You can listen to the full episode here. 

Here are 5 key take-aways from that conversation: 

1 – It’s an evolution, not a revolution.

Let me be clear – this isn’t about overhauling everything we know about auditing.  

The core principles, assertions, and objectives remain intact. However, by ingesting client data upfront and leveraging intelligent analytics, we are enhancing efficiency and quality in groundbreaking ways. 

Imagine walking into that planning meeting already armed with comprehensive insights into your client’s data. As one Validis client firm aptly put it, “We look a lot smarter when we know what’s going on before we meet with the client.” Leveraging technologies to ingest client data eliminates the back-and-forth requests for missing files or clarification on numbers. 

2 – Audit sampling is now strategic.  

Rather than relying solely on broad statistical samples, we can laser in on the highest risk areas pinpointed by the data-driven risk assessment. Those large, past-due receivables? They’re now our top priority for sampling. 

3 – Future auditors expect more value-add work. 

Our tech-savvy next generation of auditors don’t want to spend time chasing data or doing menial tasks. They expect to leverage cutting-edge tools to do real, meaningful work. That’s why more students are evaluating firms’ technology stacks before accepting offers. 

4 – The robots make us better auditors. 

Of course, AI and tools like ChatGPT aren’t replacing human auditors anytime soon. But they are powerful aids for enhancing risk assessment, refining procedures, and improving written communications. We should embrace these technologies as augmentations to our skills. 

5 – My final message is simple: ”Embrace change”

The Audit profession is so good at so many things. One thing we haven’t been real good at is change management. But the data-driven audit revolution is in full swing. While change can be difficult, I urge you all to embrace it now. It’s an evolution we cannot afford to miss. 

 

At Validis, we are at the forefront of this evolution, laser-focused on bringing data to the forefront of the audit process. We connect directly to a business’s accounting package to extract, standardize, and deploy analysis-ready data in minutes. This data can then be used across multiple systems, like Datasnipper, Suralink and Alteryx. 

Get in touch to find out how some of the biggest names in Auditing are using Validis to make the shift away from compliance to advisory work.