Question

For our discussion this week, find information on a new technology that you think will impact auditing.

Post a discussion item with the following:

A description of the technology and what it does

The potential impact on auditing

Source your information so others can reference it

Answer 1

Big Data and Analytics is one of the emerging technologies which might have an impact on auditing. Big Data tech basically handles huge mountain data and using statistical models tries to find a pattern or insights from the data which might be of some use of the user.

This also involves using various custom-made algorithms and models which automate tedious tasks and help the user to dig through a huge bunch of data.

Potential Impact on Audit:

• Increased testing sample size with greater accuracy and in-depth research;
• Helps in obtaining high-quality audit evidence and useful insights for the business and other stakeholders;
• Fraud Investigation and searching for anomalies becomes easier;
• Pulling out relevant results from a large number of transactions and forming a basis for an audit opinion;
• Accessing results from multiple domains and processes under one parent report;
• Using models and algorithms to do sampling and finding evidence;