Technology is changing the audit. Audit platforms and the related applications are increasingly relying on various automated tools and techniques (ATT) to perform risk assessments and other audit procedures.
CPAB published Technology in the Audit which provides perspectives on how the use of technology is enhancing the quality of audits. In this publication we also describe challenges that are emerging, as well as our expectations of audit firms, as the use of technology comes to represent a more significant component of the audit effort.
The use of technology continues to be a focus in our inspections. This includes evaluating the system of quality management practices associated with developing, obtaining, and maintaining ATT at both the firm-level and engagement-level. CPAB is also monitoring the use of ATT, and the related impact on audit quality.
The use of artificial intelligence (AI) by audit firms and reporting issuers is an emerging area that will have an impact on financial reporting and audit in the future. CPAB published an audit risk alert that addresses areas for audit firms to consider when considering the use of AI applications in the audit.