Question

Explain how you believe auditing may change in the next decade and what is leading to those changes. Further, explain whether the changes will improve or endanger the quality of financial reporting.

Answer 1

In every field change is often common and necessary in some particular things

changes in auditing

1. Mainly now a days the auditing get dominated by the technology.

2. In prior days all the work is done through human manually .

3. If there is any huge populations of the work then all the professionals do random number tables and select the population to do work . But now the system automatically picks the transactions to work .

4. Simplification of the work earlier every auditor has to approach the management of bussiness to get knowledge about bussiness and has to meet old auditor physically and know about bussiness but now nothing is required even though without prior knowledge the audit work can be started.

Effects of changes in auditing

1. As we said in the above changes of technology may leads to a bit of unemployment.

2. Unemployment is not for professionals but who work under professionals.

3. There is also a time saving in all the works.

4. There is a big threat to work that usage of technology for selecting the work may be not so good and it may leave sensitive areas of work.

5. Auditors should not totally depend up on the technology and they should maintain adequate human resources support.

6. The auditor should observe all the changes going around them and they have to try to get them under there control.

7. Auditors should not depend of changes they have to make changes for there easier but if they only totally depend upon changes and acts whatever it requires then the work and principle of audit totally changes.

These are the changes and effects in auditing may occur in future.

I hope , all the above information is useful to you.

Thank you.