ACCOUNTANT_SUMMER18_AMENDED_PG12
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DATA ANALYTICS<br />
approaches to identify testing that ADA replaces as<br />
it seems that auditors are reluctant to trust the tools<br />
given the inexperience in using them to generate<br />
primary audit evidence. At times auditors used ADAs<br />
solely for adding value to their audit committee<br />
reports without constituting any audit evidence in<br />
arriving at their opinions, with the risk of verging into<br />
providing non-audit services.<br />
It is clear that audits need to evolve further into<br />
embracing technology and the benefits that ADA<br />
bring. In 50 years we have gone from paper ledgers<br />
to databases to cloud computing and now to<br />
blockchain technologies. Auditors need to re-invent<br />
themselves. They need to be ready to embrace the<br />
future of technology and not just the challenges<br />
brought about by the current ones. Audit procedures<br />
need to be revisited in order to ensure that they<br />
are leveraging upon the possibilities available<br />
with today’s technology. Is it still efficient to adopt<br />
statistical sampling techniques in environments<br />
where millions of transactions are processed daily?<br />
The regulators, the Malta Institute of Accountants,<br />
The Accountancy Board and international bodies<br />
need to discuss and share knowledge on what is<br />
acceptable, best approaches and considerations<br />
in adopting ADAs. As we get to terms with the<br />
technology, we need to make sure that our audit<br />
methodologies are enhanced to make use of current<br />
techniques to provide better insight to the auditor<br />
and audit committees.<br />
In the words of Robert M. Pirsig, ‘If you run from<br />
technology, it will chase you.’<br />
Save the date<br />
MIA and ICaEW<br />
Joint Event<br />
Tuesday, 4th December 2018<br />
theaccountant.org.mt<br />
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