Audit Digitalization

What is digitization?

There is no doubt that technological innovation is a fundamental pillar of the current economy and the operation of companies, as well as its use to add value to businesses. There is also no doubt that, after COVID-19, digitization and the presence of technology in our lives, whether personal or professional, have still experienced greater growth than previously experienced.

That is why it is important to take it into account in all areas that we can imagine, be it for users and professionals or for data processing. In this way, it is impossible not to take into account the digitization of companies in the audit processes.

How does digitization affect companies?

Organizations have been promoting new technologies for years, both to improve connectivity between their professionals and with consumers. We can think, for example, of the importance of software for teamwork, such as Microsoft Teams, or the importance of social networks in communication with users or customers.

But corporations have also taken advantage of large-scale digital transformation to evolve or transform traditional business models. For example, the company Peloton, with its exercise bikes on which group sessions can be held thanks to the digitization of its business model.

In summary, digitization has taken place in companies both in their business models and in connectivity, the way of working, in processes and other areas, so its impact is very significant.

What should digitization consist of in audits?

As a consequence of the aforementioned, one of the most affected sectors is auditing, since the auditor is at the forefront in terms of understanding and reviewing the processes and business of companies.

The auditor, therefore, must adapt and evolve in parallel to this digital transformation, both from a commercial vision perspective, to better understand the needs of clients, as well as in the identification of risks and data processing.

The auditor must understand the new processes of the companies that are impacted by a strong digitization and, for this, they must understand both the process carried out by the company and the technologies and tools that are used, for which reason they will surely have to be professionals specialized in these areas of work and tools in audit companies.

During the review process, another key aspect will be the data processing, which will have to be understood, treated and processed despite the fact that the amount of data is massive, as is increasingly the case.

Lastly, it is probably necessary to establish better connectivity with the client to offer a higher value-added service, for example, create a technological platform that brings together all the audit teams and even the audited companies.

Conclusion

The understanding and incorporation of digitization in audit processes should not only serve to gain greater efficiency at work, which is totally necessary to be able to focus as much time on areas that require value judgments and not so much on those that may automated, but also to better understand the processes of corporations and offer greater added value.

OMAR CAMERO Contador Público Autorizado Socio Director de Camero, Camero & Asociados..