ACC621 Assignment: Technology in Audit Engagements 2022

ACC621 Assignment: Technology in Audit Engagements1
ACC621 ASSIGNMENT: TECHNOLOGY IN AUDIT ENGAGEMENTS
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ACC621 Assignment: Technology in Audit Engagements2
ACC621 Assignment: Technology in Audit Engagements
Technology in the contemporary world is advancing very fast, making it nearly
impossible for organizations and professions to keep up with the current trend. The technology
focuses on making life more comfortable and improving quality of life through ensuring efficient
and effective operation. Unlike other professions in the world, the audit sector is feeling and will
continue to experience the impact of technology in one way or another. Technology advances
will determine future audit engagements. In this paper, we will discuss the three key technologies
affecting or threatening to change the audit profession and the disruptive potential of the
technologies.
Furthermore, we will discuss whether the technologies have the potential to replace
human auditors. Based on the impact of the technology of the audit sector, we will recommend
the best technology that the organization in our case study should adopt. Technology is here to
stay, and it will affect various aspects of human life. Business organizations in multiple
industries have to acknowledge technology advancement and be flexible and agile in responding
to technological change. Technology may seem to threaten human labor, but even the most
autonomous sophisticated technology will, at some point, require human input. Therefore,
technology will disrupt the audit profession, but it will not replace human auditors entirely.
Three key Technologies affecting the Audit Profession
Information technology has become an essential element in every business organization
and industry. IT has led to the development of sophisticated, effective, and efficient technologies
that change how auditing is done in the contemporary world. These technologies will continue to
shape the auditing landscape soon. Necessity will allow auditors to use technologies that enable
data gathering and analysis of more significant samples. There are several technologies

ACC621 Assignment: Technology in Audit Engagements3
incorporated in the audit profession, but the magnitude of impact varies from one technology to
another.
The three key technologies affecting the audit profession include artificial intelligence,
machine learning, and blockchain technologies. Artificial intelligence refers to the computing
systems that demonstrate human intelligence qualities. Artificial intelligence involves several
other technologies that are combined to exhibit human intelligence. The interlinked technologies
engaged in artificial intelligence include sentiment analysis, machine learning, data mining,
image recognition, and speech recognition. Machine learning technologies, on the other hand,
consists of the capability of computer systems to interact with their environment and improve
their functionality without human input. Machine learning uses the experience to enhance routine
operations, thus improving the productivity and functionality of computer systems. Lastly,
blockchain technology is essentially a digital ledge that captures the transactions of various
parties within a network. Several blockchain technologies are developed and tested, but they all
conform to the peer-to-peer, Internet-based distributed ledger architecture.
Artificial intelligence in Auditing
Artificial intelligence (AI) involves the incorporating of various technologies to produce
computer systems that demonstrate human knowledge. Artificial intelligence technologies are
affecting the audit sector in multiple ways, and it is foreseen to dominate the auditing operations
soon. The development of artificial intelligence has created a fear of reducing the workforce in
the auditing sector (Finamore and Dutta, 2014). Artificial intelligence will change the
communication within the audit team. For instance, Artificial intelligence through interlinked
technologies allows the simulation of the target audience. This will help team members in the
audit team to rehearse presentations in virtual conference rooms and lecture halls before the