The Future of Audit is Data-Driven | 5 Reasons to Embrace It
The data-driven audit is not just some passing fad - it's the natural evolution that will differentiate the auditing leaders from the followers.
The good news is that the starting point of this evolution is within reach.
The technology to tap directly into a business’ accounting system already exists. Auditors can now access standardized transaction level General Ledger, and Accounts Receivables/Payables subledger data in minutes. Ultimately delivering audit-ready data and a single source of truth across the entire audit process. It's this comprehensive data foundation that unlocks a more efficient, higher-quality audit experience.
Innovative? Absolutely. But also, the wise strategic move to future-proof your firm.
Here are 5 compelling reasons to get on board:
1. You'll arrive at planning with substantive insights.
Rather than starting engagements without full context, you'll have objective data-driven visibility into the client's books from day one - trends, risk areas, anomalies, and more.
Imagine walking into that planning meeting already armed with comprehensive insights into your client’s data. As one Validis client firm aptly put it, “We look a lot smarter when we know what’s going on before we meet with the client.”
2. Sampling gets laser-focused on high-risk areas.
Random sampling is inefficient. Access to user-friendly data dashboards makes it easy to identify and strategically concentrate sampling on the high-risk areas like aged receivables or suspect transactions.
3. More capacity for premium advisory services.
Leveraging technologies to ingest client data eliminates the back-and-forth requests for missing files or clarification on numbers.
By automating repetitive data acquisition steps allows your team to reallocate time toward higher-value analysis and consultative advising. Clients receive a more strategic experience.
4. AI becomes a force-multiplier - if your data is good enough.
Let's be clear - AI will not replace auditors anytime soon. But you can leverage intelligent tools to enhance risk assessments, refine audit programs, streamline reporting, and more. AI augments your team's expertise. But the output is only as good as the data you input.
5. Top talent demands innovative technologies.
The best emerging accounting professionals prioritize firms investing in modern technologies that allow them to focus on high-value work - not mundane tasks. A data-driven approach attracts top talent.
Step one: Get the data right
The data-driven audit path represents the future as new technologies emerge. Those clinging to outdated methods will get outpaced by efficient, tech-savvy competitors delivering greater client value. It's that simple.
The first step in your journey towards implementing a data-driven audit is getting the data right. Contact Validis today to find out how leading audit firms are leveraging centralized data access to elevate quality and insights.