Impact of Technology on Auditing: ACC621 Report, Semester 2

This report explores the impact of advanced technologies on auditing practices, focusing on the implementation of audit support systems, artificial intelligence (AI), and blockchain. It begins with an executive summary that outlines the main points, including the advantages of AI in auditing over other systems. The report includes an email to Savannah, discussing the benefits of these advanced technologies and their applicability in a small audit firm. The email emphasizes how AI can improve efficiency and accuracy in audit procedures, and how it can be used for data analysis, risk assessment, and fraud detection. The rationale section explains the role of auditors and how advanced technologies, such as audit support systems, AI, and blockchain, are changing audit functions. Each technology is described, highlighting its benefits like improved communication, support for audit procedures, and reduced bias. The report concludes that AI is a more reliable and accurate system for evaluating audit functions, providing evaluated and audited accounting information systematically. The report also includes a discussion of the challenges associated with implementing these technologies, emphasizing the need for accurate, reliable, and complete data, as well as the importance of maintaining quality control and not over-relying on data analytics procedures. The report emphasizes that auditors should use these technologies as tools to enhance their professional judgment, rather than as replacements for it.

Running head: ISSUES IN AUDITING
Issues in Auditing
Name of Student:
Name of the University:
Authors’ note

1ISSUES IN AUDITING
EXECUTIVE SUMMARY:
This report is particularly based on the discussions about an advanced auditing system is used
to evaluate the overall audit operation of an organization during a particular time. In the first
part of this report is providing a general overview of such advanced auditing system. Such
techniques are Audit support system, Artificial intelligence in audit and Block chain system
etc. From the above discussions, it can be concluded that out of those three audit
technologies, artificial intelligence in the audit system is a more reliable and accurate system
in the case to evaluate audit function of an organization. At the end part of this report is
providing an email to Savannah, regarding the benefits of such advanced auditing system and
also the applicability of such system for an organization.

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Table of Contents
Email to Savannah:....................................................................................................................3
Rationale of the email............................................................................................................6
References:...............................................................................................................................11

3ISSUES IN AUDITING
Email to Savannah:
Send
To:
Cc…
Bcc...
Subject Implementation of Advanced technology in Audit program.
Dear Savannah,
This mail is on behalf of the issues, that you are raised regarding the applicability of
advanced technology in audit programme. According to the present situation the applicability
of different technology in auditing are raised by day to day. Many different technologies are
like the Audit support system, Artificial intelligence in audit and Block chain system are
providing a new form for the overall audit functions. Implementation of those advanced
technologies are provide a new shape to the present audit function.
However, our firm is a small audit firm and currently prepares audit work papers
predominantly in excel worksheet. The excel file was generally used by our firm includes the
standard audit program and some important templates as recommended to perform the audit
procedures. Such excel files are normally contained the individual matters, work details,
relevant issues etc. that required auditors’ attentions.
In the present scenario the implementation of advanced technology in auditing
provides an innovation in overall audit programme. With the using of new technologies and
its tools have such potential to enable an auditor analyse large volume of structured or
unstructured financial information. In an audit programme, the implementation and use of
artificial intelligence or robotic system is normally associate with the client’s systems in case

4ISSUES IN AUDITING
to transfer and compile the accounting information automatically. Such automatic procedures,
which are at present conducting through the using of advanced audit technology, was
previously performed through a junior auditor manually. Along with this, such advanced
audit technologies are introduced many efficiencies. Such efficiencies are relating to the
processing or conformation responses or using of drones for physical inventory observation
and evaluations. That means implementation of this advanced auditing system provides a new
way to perform an audit function properly.
An auditor is need to be more care full while performing his duties individually or in a
team. He needs to examine carefully all the complex and high risk areas that require proper
auditor judgements and proper evaluations. Those advanced audit tools that are used in case
to perform the audit function properly basically needs proper awareness and deeper insights
into the company’s operations. Proper data analysis may allow an auditor to track and
evaluate Client Company’s trend and probable risks against industry or geographical
database. Those process are normally allowing an auditor to make more informed decisions
and assessment procedures throughout the audit process. Furthermore, with the proper
assertions or evaluations, using the power of big data, an auditor will be able to correlate with
disparate and relevant accounting data information in case to develop predictive indicators to
better understanding the areas of higher risk. Using the advanced form technology in an audit
is generally provides an ability to improve a predictive models in case to forecast the
financial distress in order to better assess the probable future financial conditions or in case to
improve the fraud detection through the process of proper risk assessment.
Using or implementation of these technologies and its tools and methods are raise
certain challenges. Such data’s are required to be more accurate, reliable and also in a
complete form, which is true in case of general ledger data, financial and operational data and
also some relevant data that are normally used outside the organizations. Such data are need

5ISSUES IN AUDITING
to be secured and also need to maintain the quality control in case to perform audit operations
efficiently. However, an auditor should need to take care that they are not over relying and
over expectations on the data analytic procedures. Those advanced technologies and its tools
are powerful in general, though such technologies are not enough to consider as substitutes
for the auditor’s knowledge, individual judgements, relating exercise for professional
scepticism.
For our firm it is better to use the artificial intelligence in the audit system. As it is
more reliable and accurate system in the case to evaluate audit function of an organization. It
is normally used to provide evaluated and audited accounting information in a systematic
way.

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Rationale of the email
From the email send to savannah it can be said that audit is generally considered as
the examination procedure of the overall financial information and conditions of an
organization during a particular period. Normally such audit programme is conducted through
the application of qualified auditor in the case to evaluate the overall financial health of an
organization. In case to perform such audit programme efficiently the auditor generally
appointed is required to be qualified, as well as he needs to hold the ideas and concepts
regarding the overall accounting process, procedures and relevant regulations in the case to
audit the financial conditions of an organization. An auditor usually is considered as the sole
performer who is generally appointed to evaluate the overall financial health of an
organization (Appelbaum, Kogan and Vasarhelyi 2017).
In the present scenario for developments of the overall audit programme of an
organization, many different audit advanced technologies are introduced. Implementations of
Such technologies are provided with a new way to perform the overall financial conditions.
Such techniques are an Audit support system, Artificial intelligence in audit and Block chain
system that is offering a new form in the case to perform the overall audit programme
efficiently.
In case to perform the overall financial audit programme of an organization many
different advanced technologies are introduced. Those technologies are normally helps an
auditor to perform his audit functions more accurately and in an efficient manner. Such
Advanced audit technologies are, Audit support system, Artificial intelligence in audit and
Block chain system (Pan and Seow 2016).

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Audit support system:
An audit support system is normally considered as one of the essential advance
technology that was used to perform the overall financial audit functions accurately. Such
systems are the key technology application that was deployed by an audit firms in case to
facilitate efficient and an effective audit programmes. In such system many key elements are
used in case to evaluate an organizations audit functions properly (Senft, Gallegos and Davis
2016).
Normally such systems are used to enable the financial conditions and operations of
an organization during a particular period. With the implementations of such advanced
technological system in an organization, it provides the following efficiencies;
Proper communication with audit team:
The audit team of ours company focuses on providing effective communication. Our
Audit team is generally appointed to evaluate the overall financial conditions during a
particular time, and such operations can be performed more efficiently with the using of such
audit support system. Such a system is also used to act as a communication channel between
different parties at the time of conduct audit functions.
Provide support system in case of audit procedure:
Such systems are used to analyse a large amount of data through the using of an
accounting software system. Such analytical procedures help to evaluate the overall financial
conditions properly at the time of performing audit operations. It usually considered that such
audit functions are performed in every different stage in the case to conduct the audit
functions more accurately and reliably.

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Reduce biasness:
Biasness is something that ours audit team is highly focused on reducing the
organisational biasness. Using a software system in case of maintaining the financial
transactions provides more accurate data normally, so there is no options of biasness pointed
while maintaining the overall financial records. Simultaneously, while analysis of the audit
report of an organization, such systems are also used to avoid unnecessary biasness regarding
decision-making.
Artificial intelligence in audit:
The Artificial intelligence in audit is usually applied in the case to provide a
contrasting review of audit performance. Normally such systems are used to give the auditors
to optimize their time, enable them to use human in the case to analyse a broader and deeper
set of accounting information and documents (Sirois, Marmousez and Simunic 2016). Such a
system is also used to allow for the auditors in the case to interact with other peoples in the
case to evaluate accounting information more accurately.
Proper communication with audit team:
Such systems are used to provide necessary information to the individual auditor in
the case to perform audit function properly. It is also used as the way of communication
between different parties in the case to evaluate accounting information accurately and to
provide an audit report more accurately.
Provide support system in case of audit procedure:
It is one of the advanced audit programmes that was normally used to operate the
audit function more correctly. With the implementation of such procedures, an organization

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usually can conduct its audit programme systematically, and such systems also provide
necessary help to an auditor to perform his duties more accurately.
Reduce biasness:
Such a system is normally used to provide necessary accounting information
accurately so that an auditor can conduct his performance more accurately. As it is a
computerised technology system no point of biasness is located in here, due to such reason no
options of individual biasness are usually found in case of Artificial intelligence system.
Block chain system:
I personally feel that a block chain system is generally considered as a distributed
ledger, which usually contains the relevant accounting details of every transaction that are
usually processed during the particular time. Normally the validity and reliability of such
operations are protected through the using of digital signatures. In such a system, no
centralized administrative procedures are operated, and anyone can produce such a system
with proper accounting knowledge (Zou 2019). Thus the block chain system is going to be an
effective process which the company could be looking to implement in this regard.
Proper communication with audit team:
The audit team is an important part and parcel of the company. However it is seen that due
and effective communication could be highly implementing to the procedures of the audit
team. Thus it helps to process the regular business transactions to the business. Similarly for
our company also the audit team plays an important role in communication.

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Provide support system in case of audit procedure:
Such system is used to provide necessary information every individual auditor by
recording every accounting transactions in a systematic manner.
Reduce biasness:
Such systems are generally used to record all the relevant accounting information in a
ledger format. It is a computerised accounting system and based on some suitable software.
Therefore for such auditing system, no chance of individual biasness can occur. Therefore the
biasness is something which our company is highly focused on to mitigate.
It can be said from the above discussions that generally an advanced auditing system
is used to evaluate the overall audit operation of an organization during a particular time. In
the present scenario, many different audit technologies are invented to perform the overall
audit function. Such techniques are advanced audit technologies an Audit support system,
Artificial intelligence in audit and Block chain system etc. From the above discussions, it can
be concluded that out of those three audit technologies, artificial intelligence in the audit
system is a more reliable and accurate system in the case to evaluate audit function of an
organization. It is normally used to provide evaluated and audited accounting information in a
systematic way.

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References:
Appelbaum, D., Kogan, A. and Vasarhelyi, M.A., 2017. Big Data and analytics in the modern
audit engagement: Research needs. Auditing: A Journal of Practice & Theory, 36(4), pp.1-27.
Pan, G. and Seow, P.S., 2016. Preparing accounting graduates for digital revolution: A
critical review of information technology competencies and skills development. Journal of
Education for business, 91(3), pp.166-175.
Senft, S., Gallegos, F. and Davis, A., 2016. Information technology control and audit.
Auerbach publications.
Sirois, L.P., Marmousez, S. and Simunic, D.A., 2016. Auditor size and audit quality revisited:
The importance of audit technology. Comptabilité-Contrôle-Audit, 22(3), pp.111-144.
Zou, J., 2019. On the Role of Internal Audit in Corporate Governance. American Journal of
Industrial and Business Management, 9(01), p.63.