Application of Information Technology on Auditing

Running head: APPLICATION OF INFORMATION TECHNOLOGY ON AUDITING
Application of Information Technology on Auditing
Name of the Student
Name of the University
Author note

1
APPLICATION OF INFORMATION TECHNOLOGY ON AUDITING
Dear jack,
In response to the changes in the process of auditing system and the implication of
technology it become a challenge for the auditors to adopt with the new process of auditing.
Though the technological improvement will help us to serve the clients more efficiently but at
the same time these technological improvements will eradicate many manual works and that
will affect our jobs. In this mail I will elaborate you some of the major issues of the use of
technology and its positive and negative effect.
There are three major technologies that are affecting the profession of audit these
three technologies are audit support system, blockchain technology and the artificial
intelligence. The description so each of these technologies and the effects on the audit
profession are stated below
Audit support system
The audit support system is a technology that bring a revolutionary change in the
profession of audit the system brings more efficiency and enable the auditor to provide high
quality of audit report. The major benefits that the auditors will get from the use of the audit
support system are providing accurate audit evidences, easy to use mitigate the risk related
with manipulation of documents.
Block chain
A block chain is a digital ledger that is developed to record all the transactions in a
single network. It is a peer to peer internet based distributed ledger that cover all the
transactions. The block chain technology helps to provide real time settlement of transactions.
The peer to peer distributed network helps to ensure smooth communication in the audit

2
APPLICATION OF INFORMATION TECHNOLOGY ON AUDITING
process. It contains system of double checking of every transaction which ensure that all the
transactions a re recorded correctly.
Artificial intelligence
Artificial intelligence refers to the machine undertaking tasks that demands some kind
of intelligence which typically refers to the things like learning knowing thinking sensing
reasoning, creating achieving goals and generating and understanding technologies. Recent
progress in AI has been based on techniques such as machine learning and deep learning,
from which it is possible to classify objects or predict values through statistical analysis or
large amount of data rather than through explicit programming (Vasarhelyi and Halper 2018).
Rationale
Audit support system
Communication system
Through the audit support system it will be possible for the audit firm to communicate
easily to each other as the entire communication system will be linked with each other and
that will ensure that there is no miscommunication occurred among the team members during
the process pf audit and all the information are communicated to every one at the time when
it is required (Fieweger et al 2015).
Analytical procedures
The audit support system provides accurate bias free documents to the auditors which
will help the audit firm to make more efficient analysis that will ensure that all the areas of
the audit process are covered and there is no gap in the audit pregame. In case of auditing it is
very essential to check that all the documents are analyses properly based on the analysis of