ACC621: Audit Technology Impact Report, Semester 2, 2019

This report, prepared by a student, addresses the impact of technology on audit engagements, responding to concerns about the future of auditors. It analyzes three key technologies: IT audits, Artificial Intelligence (AI), and Blockchain, assessing their disruptive potential. The report examines how these technologies affect communication processes, support auditors' analytical procedures at various stages including risk assessment, and potentially reduce auditor bias in decision-making. It concludes that these technologies do not have the potential to fully replace human auditors, highlighting the importance of human judgment and expertise in the audit process. The report suggests AI as the most appropriate technology for the company and mentions the COBIT 5 tool as a beneficial resource in the auditing process.

Running head: IT IN AUDITING
REPLY TO MAIL
IT IN AUDITING
Name of the Student
Name of the University
Author note

Respected Sir/ Madam,
Hope you are having a nice day. Proper research is made as per the company and
operational requirement. It is expected that the data that are collected will be benefitting the
entire process of auditing. Proper recommendations are provided.
3 technologies that will be affecting the audit profession are as follows: -
 IT Audit
 Artificial Intelligence
 Blockchain technology
Disruptive potential of these technology
 Affect communication: In case of the IT Audit, communication process will be getting
benefitted to a large extent. Proactive communication of the issues that are based on the
trends are performed. Integrated communication tools are also used in this technology.
Again in case of AI, deep learning is incorporated and hence wise it helps the leaders to
understand the traits of individual employees and hence wise facilitating the
communication process, AI also helps in aligning the goal of task with the behavioral
traits of individual. This helps in better communication as well. Blockchain also
facilitates the functional process of communication specially when there are more than
one branches of the organization. Hence wise it has been seen that few sensitive data of
one of the organization can be acting beneficial in the collaboration process. With the
help of blockchain, the sensitive data are transacted in a secured manner.
 Support auditor’s analytical procedure at various stages in audit: The different stages that
will be getting benefitted due to the implementation of the above stated technologies

includes the likes of Risks assessment procedures, substantial analytical procedures and
final analytical procedures. IT Audit will be benefitting the Risk assessment procedure
stage and the substantive analytical procedures. AI technology will be benefitting the
processing of the substantive analytical as well as that of the final analytical procedure.
Blockchain technology will also be affecting the stages of risks assessment procedure.
 Reduce auditor’s bias in decision making: IT Audit reduces the biasness of the auditor to
a negligible state. This ensures that the editor stays bound by the data that are provided
by the IT Audit tool. The IT Audit tools gather data and the entire operation is performed
as per the data that are collected. Again with the help of AI, the main aspect that is to be
considered is that predictive analysis is performed. This performing of predictive analysis
helps in gathering of present data and past data of the entire auditing setup. This setup
helps in performing proper auditing. This technology also reduces the scope of biasness
of the auditor. Blockchain does not reduce the biasness in the auditing process. The fact
that the auditing details of one organization is used by another organization will be used
by the collaborated organization for performing auditing as well. This is performed in an
automated manner. This ensures that if the 1st auditor have been biased his result will be
affecting the entire scenario.
Human Replacement
No, these technologies does not have the potential to replace human in the auditing
sections. It has been seen that the different technologies, namely IT Audits, Artificial intelligence
and Blockchain has the potential to perform proper data assessment and data collection. This
ensures that the data that are collected are assessed but the auditing is to be performed by human
personnel only.

Appropriate technology
The appropriate technology that is to be used by the company is AI Audit. There are
several IT Audit tools. COBIT 5 is one tool that can be acting beneficial in the auditing process.
Rationale is also provided for better understanding of the points provided in this mail.
Hope this mail helps in implementing selecting the technology that will be helping in the
process.
With regards
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