Page 227 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Better Analytics: Advanced analytics capabilities enable management and auditors to identify trends and
patterns, such as potential fraud, which are difficult to detect manually.
Improved Risk Assessment: Automation aids in the audit process and streamlines testing, improving risk
assessment. This allows management and auditors to focus on areas with a higher risk of material misstatement
and make informed decisions.
Enhanced Effectiveness & Efficiency: Digital audit tools and automation techniques standardize processes and
automate routine tasks, such as reconciliation, saving time and costs.
Consideration and Challenges of Digital Audit
(Shortcut: Business People are Right - Strategize Process Security)
Know What Business Benefits Understand the business benefits to be achieved through automation.
Think People First: Prioritize people and acknowledge the challenges of change.
Target the Right Processes: Identify the right processes for successful automation.
Part of a Broader Digitalization Strategy: Incorporate automation within a broader digitalization strategy.
Ensure the Process Works: Ensure processes are standardized and functional before automation, as bots struggle
with process changes.
Governance and Data Security: Address new challenges introduced by automation, including governance and
data security.
Understanding of management’s implementation and oversight of new technologies
Process Changes: Understand new activities or alterations to existing processes due to technology
implementation, including changes in revenue streams, personnel roles, automation of tasks, and staffing levels
affecting internal control.
Changes in System Development & Maintenance: Comprehend changes in system development and
maintenance and assess if these changes introduce new risks requiring additional controls.
Impact of the New Technology on Information System: Evaluate the effect of new technology on how the
organization obtains, generates, and uses quality information to support internal control.

(CNO DAA.040) Auditing Digitally
What is the concept of auditing digitally?
Auditing Digitally is using advancements in technology for conducting an effective and efficient audit, leveraging
modern tools and methods. The opportunity lies in understanding how technology can assist in auditing
challenges and applying innovative solutions to digitize audit delivery.

(Shortcut: DAS methods)
Data Analysis: New technologies aid in data capture and analysis, enabling auditors to focus on the real risks of
the client.
Automation: Bots can be utilized for analyzing statutory payments compliance, automating routine tasks and
increasing the speed of audit assignments.
Sampling Tools: These tools are used for selecting a sample size from a population based on materiality,
enhancing the accuracy and efficiency of audits.
Expectations from an Auditor
(Shortcut: Advance technology from UAE)
Advanced Technologies: Opportunities exist for more advanced technologies like AI and drones to significantly
impact the audit process. Emerging technologies can help evolve the scope of audits, for instance, using data
analytics and machine learning for fraud detection.
Upskilling: Investment in digital upskilling of personnel is crucial for conducting effective technology audits.
Automation: Investment in technology should focus on developing tools to automate and enhance existing
processes, such as data analytics and collaboration tools, to drive audit quality.

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