Auditors are adapting to a fast-changing environment

 https://www.accaglobal.com/an/en/member/member/accounting-business/2018/07/practice/fast-changing.html

Комментарии

  1. Medina Nurmagomedova
    1st year student of Master's degree


    According to 'External factors from technological change to increasing business complexity are hastening a raft of changes for auditors' article Peter William argues about the way auditing will be changed by high technologies and legal transparency in the foreseeable future.

    In order to discuss this important theme the author adduce a raft of interviews' parts from reputable people in the field of auditing and accounting.

    The main idea is that auditing reports should be more clear for external users to break the mould and demonstrate the value of audit and to challenge the idea that auditors and accountants are great with numbers but can’t write.

    Another problem that the author points out is the incompleteness of auditing reports when the auditors talk about five or six problem areas in company while there are really huge problems in all the sides of  financial situation. Sometimes it causes collapses of companies.

    The author gives Liz Stamford's quote about the importance of reporting the vast range and depth of activity undertaken by audit firms to support quality audit work.

    The Monitoring Group was consulting about the new auditing standards but it unlocked another problem - technical standards haven't enough confidence in public eyes. It brings more debates between auditors in many ways instead.

    The author contends that auditing standards should give backbone to the auditor's approach excluding arguments and non-confidence in their job.

    The third main problem of the article is the tide of technology. P. William confirms that auditing and accounting can't avoid the technological revolution and the artifical intelligence will do a huge part of grunt work in auditing instead of people and working with technology will help accountants to attract more young people in this profession.

    The author maintain the idea that if audit can continue to communicate well through audit reports, respond well to the demands of regulators and embrace technology, then #AuditorProud will be strong in the future.

    ОтветитьУдалить
  2. Peter Williams's article raises the issue of adaptation of audit to a rapidly changing world. A number of changes will lead to improving the quality and value of the audit.
    One of the key shifts is closer communication of auditors with leadership and public. One of the important changes is the creation of KAMs, with the adoption of which audit reports will become more meaningful and unique, and firms will implement more efficient management. The challenge to create KAMs is a crisis of confidence in audit standards because of the opinion that accounting has an excessive impact on processes. Therefore, proposals were made to establish stricter international audit standards and ethics independent of the auditor's profession.
    In the future, due to a large flow of technology, regulatory authorities will not be able to control firms ' activities. The main options that solve this problem is blockchain, which will analyze client data, and artificial intelligence that allows to consider information from different sides.
    If the auditor is properly communicating with the management and public, it is good to respond to regulatory requirements and use technology, the audit will be one of the strongest professions.

    ОтветитьУдалить
  3. Dayana Shikhgasanova
    The article is headline "External factors from technological change to increasing business complexity are hastening a raft of changes for auditors",2018

    In the article "External factors from technological change to increasing business complexity are hastening a raft of changes for auditors", the author says that the audit will soon switch to technologically high processes.

    Conversations with reputable people in the field of audit and accounting confirm the importance of the topic. The author raises the following issues: 1) the complexity in the perception of reports; 2) the brevity of audit reports, since specialists touch on a few main areas of audit, and leave the rest unassembled. Clearly, the first problem leads to the second
    Peter Williams opinion: "audit standards should eliminate uncertainty in the work."

    However, the main idea is that the Technological Revolution and artificial intelligence will in the future do most of the work without human involvement

    ОтветитьУдалить
  4. Aiza Abdulkhalimova
    In the article ‘External factors from technological change to increasing business complexity are hastening a raft of changes for auditors’, 2018, the author reports that by 2028, a raft of changes will be made in the scope of audit, which will lead to an increase in quality, value and relevance. Also, by this time, the audit will overwhelm the technology and this will help reduce the amount of rough work in this area.
    The author points out a lot of fragments from interviews with significant people in the auditor. And the main idea of the article is the creation and active use of KAMs by 2028.
    The goal of all auditors is to eliminate the problem of ensuring that the auditing and assurance standards adapt to our changing environment, and for this goal do not underestimate the importance of the KAMs.
    Also, changes can be observed in behind-the-scenes firms. The author cites Fuller's statements that audit firms are thinking much more about public duties after the introduction of the public oversight committees, which includes independent non-executives. The author goes on to say that is possible by 2028 big firms will be required to do more, and Australia has taken a step forward, due to the requirement from audit firms consisting of more than 10 legal entities, a transparency report.
    Bodies the IAASB and the IOSCO, also individual audit regulators want to see this type of reporting from audit firms. The author also maintains that s regulators themselves look set to be in a radically different place by 2028. After consultation on strengthen the governance and oversight of the international audit-related standard-setting bodies, set out options that are intended to make the setting of international auditing and ethical standards independent of the auditing profession.
    The author also points out the problems that will continue to exist in audit: the desire for thorough audits, not a timely ones and the need for auditors who know about the business without being too close to it. All these stronger accounting standards will help the audit to improve in the future.

    Quoting Gambier, the author points out that auditors do not know which technologies will change the audit, but it will definitely happen. It can be blockchain, data analysis or artificial intelligence. And with these statements according to Fuller. Quoting her, the author says that these technologies will help accountants to think freely and attracting bright digital natives.
    Author concludes that if audit can continue to communicate well through audit reports, then #AuditProud should still be strong in 2028.

    ОтветитьУдалить
  5. In the article ‘External factors from technological change to increasing business complexity are hastening a raft of changes for auditors’, article Peter William argues about the way auditing will be changed by high technologies and legal transparency in the foreseeable future. the author adduce a raft of interviews' parts from reputable people in the field of auditing and accounting.
    the author of the article identifies several problems: audit reports should be more understandable to external users, incompleteness of audit reports, the tide of technology.
    the main idea of the article is the creation and active use of KAMs by 2028.The challenge to create KAMs is a crisis of confidence in audit standards because of the opinion that accounting has an excessive impact on processes.
    The author contends that auditing standards should give backbone to the auditor's approach excluding arguments and non-confidence in their job. The goal of all auditors is to eliminate the problem of ensuring that the auditing and assurance standards adapt to our changing environment, and for this goal do not underestimate the importance of the KAMs.
    The author maintain the idea that if audit can continue to communicate well through audit reports, respond well to the demands of regulators and embrace technology, then #AuditorProud will be strong in the future.

    ОтветитьУдалить
  6. According to this article Peter Williams raising a problem of adaption of audit to the rapid changes of the world that we are facing nowadays. He tries to shed some light on what changes we will see in a scope of audit in foreseeable future.
    In order to discuss this topic the author quotes people with first-hand knowledge in this field. According to this people, one of the key shifts would be a closer communication with the corporate leaders and public. Chun Wee Chew, ACCA’s regional head of policy, says that the audit report is a great tool to change the perception that auditors and accountants are good with numbers but can’t write, and demonstrate the value of audit.
    One of the main problems with audit reports is that usually auditors points out five or six problems areas in company while it’s financial reports may contain such a huge risk that can cause a collapse of the company.
    The solution to this and many other problems can be the creation and active use of KAM. By using KAM standarts auditors create much more unique, meaningful and, what is most important, understandable reports which companies may really use for the more efficient management. Moreover changes can be observed in behind-the-scenes firms. The author thinks say that by 2028 big firms will be required to do more, and Australia has taken a step forward, due to the requirement from audit firms consisting of more than 10 legal entities, a transparency report.
    The rapid development of technology that makes a big difference in our life will definitely heve an impact in audit and accounting as well. Quoting Gambier, the author points out that auditors do not know which technologies will change the audit, but it will definitely happen. It can be blockchain, data analysis or artificial intelligence. And with these statements according to Fuller. Quoting her, the author says that these technologies will help accountants to think freely and attracting bright digital natives.
    Author concludes with the idea that if audit can continue to communicate well through audit reports, then #AuditProud should still be strong in 2028.

    ОтветитьУдалить
  7. According to this article Peter Williams raising a problem of adaption of audit to the rapid changes of the world that we are facing nowadays. He tries to shed some light on what changes we will see in a scope of audit in foreseeable future.
    In order to discuss this topic the author quotes people with first-hand knowledge in this field. According to this people, one of the key shifts would be a closer communication with the corporate leaders and public. Chun Wee Chew, ACCA’s regional head of policy, says that the audit report is a great tool to change the perception that auditors and accountants are good with numbers but can’t write, and demonstrate the value of audit.
    One of the main problems with audit reports is that usually auditors points out five or six problems areas in company while it’s financial reports may contain such a huge risk that can cause a collapse of the company.
    The solution to this and many other problems can be the creation and active use of KAM. By using KAM standarts auditors create much more unique, meaningful and, what is most important, understandable reports which companies may really use for the more efficient management. Moreover changes can be observed in behind-the-scenes firms. The author thinks say that by 2028 big firms will be required to do more, and Australia has taken a step forward, due to the requirement from audit firms consisting of more than 10 legal entities, a transparency report.
    The rapid development of technology that makes a big difference in our life will definitely heve an impact in audit and accounting as well. Quoting Gambier, the author points out that auditors do not know which technologies will change the audit, but it will definitely happen. It can be blockchain, data analysis or artificial intelligence. And with these statements according to Fuller. Quoting her, the author says that these technologies will help accountants to think freely and attracting bright digital natives.
    Author concludes with the idea that if audit can continue to communicate well through audit reports, then #AuditProud should still be strong in 2028.

    ОтветитьУдалить
  8. Раисат Амирханова3 ноября 2022 г. в 02:30

    The headline of article I have read is “Auditors are adapting to a fast-changing environment”, which written by Peter Williams, accountant and journalist.
    The article touches upon issue of adaption of audit to the rapid changes of the world that we are facing.

    The key shift planned by 2028 is being the establishment and acceptance of KAMs (key audit matters). The idea, according to the International Auditing and Assurance Standards Board (IAASB) is ‘more intense communication with management’ and a greater understanding by the public of companies and their audits. Changes in the audit report will be implemented around the world.

    One of the indicators of the implementation of this technology is Australia, where audit firms with more than 10 listed entities must produce a transparency report.

    Bodies such as the IAASB and the International Organisation of Securities Commissions (IOSCO), as well as individual audit regulators, have expressed desire to see this type of reporting by audit firms.

    The Monitoring Group was consulting about the new auditing standards but it unlocked another problem - technical standards haven't enough confidence in public eyes. It brings more debates between auditors in many ways instead.
    The author says that Whatever regulators and auditors have in place by 2028, they know that they will be swept along on a tide of technology, with little control over the direction. As Gambier says, ‘It is a fair bet to say technology will have a part to play, but what that looks like nobody knows. We know lots of technologies are out there; we just don’t know which ones are going to transform audit first.’

    It should also be noted that the options for introducing this technology include blockchain, which will eliminate the need for auditors and automate some audit operations.
    The author maintain the idea If audit can continue to communicate well through audit reports, respond well to the demands of regulators and embrace technology, then #AuditorProud should still be going strong in 2028.

    ОтветитьУдалить

Отправить комментарий

Популярные сообщения