How Data Analytics, A.I and Automation are being integrated into External Audit

This week on the CPA Australia Podcast we have a special 2 part episode on Audit’s new frontier. How data analytics, artificial intelligence and automation are being integrated into external audit. Featuring guest Professor Miklos Vasarhelyi and Policy Adviser of Audit and Assurance Claire Grayston at CPA Australia. 

Leading academic in continuous audit and emerging technologies from Rutgers University, Professor Miklos Vasarhelyi discusses the latest developments in technology which are impacting external audit. This podcast provides fascinating insights into the developments which are currently taking place at the new frontier of auditing. Prof Vasarhelyi will focus on current practices with respect to data analytics, 100% testing and audit automation as well as the cutting-edge developments in process mining, AI, machine learning and auditing in the age of the 4th industrial revolution.

Part 1:

Part 2:

Part 1: Transcript (PDF)
Part 2: Transcript (PDF)
INTHEBLACK: How technology and data are transforming accounting and audit
INTHEBLACK: Is robotic process automation - or RPA - the real deal? That depends.
INTHEBLACK: Blockchain: the future of record keeping

Highlights

Part 1
01:30 Technologies currently utilised in auditing 
02:53 Progress of data analytics in auditing 
04:21 Data Analytics: Challenges auditors are facing 
07:56 Do Accounting Standards adequately address technological developments? 
08:43 Manual sampling in comparison to full population testing
13:51 Applying data analytics: the challenges of Big Data 
16:26 The Internet of Things (IoT): increased connectivity between devices leading to more powerful information sources
16:51 Requirement for wider scope of assurance: data validity, data integrity, provenance of data
22:19 Big Data and its challenges for auditing
23:11 Continuous auditing
28:08 Full Population Testing, Process Mining and Visualisation of Audits
34:00 Full Population Testing and Levels of Assurance
35:15 Data Analytics: Efficiency and Effectiveness of Full Population Testing
37:23 Audit Automation, Robotic Process Automation and Artificial Intelligence

Part 2
01:05 The future of technology in auditing
08:30 Data preparation and data cleaning
09:28 Auditors of the future: required skillset 
13:54 Application of process mining in auditing
22:47 Continuous process mining and continuous auditing
23:29 Artificial Intelligence (AI) and its potential impact on auditing
24:33 Blockchain and smart contracts for auditing
26:36 A new form of AI: deep learning
30:31 Limitations and Ethics of AI 
32:44 Auditing in the age of the 4th industrial revolution
36:44 Will audit become an automated process?
39:43 Accounting standards, education and ethics as drivers for the audit of the future
40:34 Recommendations to mid-tier 



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