Technology in the Audit
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.
The use of technology continues to be a focus in our inspections. This includes evaluating the system of quality management practices associated with developing, certifying, deploying and maintaining ATTs at both the firm-level and engagement-level. CPAB is also monitoring the use of ATTs, 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 The use of artificial intelligence in the audit — balancing innovation and risk that outlines our observations on how AI-enabled tools could enhance audit quality and how we expect firms and auditors to utilize these tools. It also identifies key risks that users of AI-enabled tools should consider when considering the use of AI -enabled tools in the audit.
CPAB also leads the International Forum of Independent Audit Regulators’ (IFIAR) Technology Task Force. The mandate of this task force includes sharing approaches and findings from audit regulators on the use of technology in audits and enhancing the understanding of how technological resources are used by the six largest international audit networks with the objective of improving audit quality.