“Embracing technology in auditing is not just about improving efficiency and accuracy; it's about unlocking deeper insights, enhancing the quality of our work, and redefining the value we bring to our clients. With advanced tools and automation, we can focus on critical risks and strategic analysis, ultimately transforming the audit landscape."
Paul Dreezen, Executive Director, Audit, and Sara Labban, Manager, Audit, at KPMG in Belgium, delve into the transformative impact of technology on auditing.
Let's kick things off with a little joke which I’m sure you’ve heard of before: "How many auditors does it take to change a light bulb?
Paul Dreezen: Haha! I know that one: “How many did it take last year?”
Nice! Jokes aside, there's a prevailing perception from outsiders that auditors are sometimes seen as rigid and prone to repeating past procedures. Is this perception still accurate in today's audit practices?
Paul Dreezen: Nothing could be further from the truth! I know that it may come as a surprise to many, but the audit function today looks nothing like what it was even 5 years ago. Audit has evolved to become more technology-driven, risk-focused, transparent, and can easily adapt to changing business environments and regulatory requirements. With Artificial Intelligence (AI) and Intelligent Automation (IA) poking their noses around every corner, can you imagine what would happen if we solely relied on manual procedures and controls? Let’s just say that I probably wouldn’t be here answering your questions!
Sara Labban: Exactly! Technologies such as AI and Machine Learning (ML) are helping auditors by taking over everyday audit chores like pulling out data, analyzing it, and spotting risks. Auditors are now using data analytics tools a lot more to screen large datasets more quickly, improving the quality and effectiveness of audits. Now, auditors have more time to bring added value elsewhere.
Can you give me some examples of technologies or tools you’re both currently using? And, I dare you to use simple words!
Paul Dreezen: Sure! One of my favorite tools is called Datasnipper. It’s an intelligent automation platform that helps businesses streamline processes, enhance efficiency, and leverage data effectively. It basically combines technologies such as machine learning, natural language processing, and robotic process automation to automate repetitive tasks, analyze data, and improve decision-making.
English, please!
Paul Dreezen: Imagine you're on a treasure hunt and you’ve been given some clues, however it requires you to go through piles of ancient maps to find hidden gems. Normally, you'd have to painstakingly examine each map, looking for details. But what if you had a magical tool that could instantly read all the maps and pull out exactly what you need? That's what Datasnipper does for auditors. When we select a sample of invoices to audit, we simply feed them into Datasnipper. This “magic wand” scans all the documents, extracting essential information like invoice dates, amounts, and currencies, and automatically fills in our audit tables with a link to the supporting documentation. It's like having an uber-smart assistant that can copy tables from a client's PDF into our Excel sheets in seconds, saving us from the tedious manual work and letting us focus on the big picture.
What makes Datasnipper stand out from all the other intelligent automation platforms?
Paul Dreezen: It’s super easy to use and it’s even integrated in your Excel tab. So, with a simply click, you’re able to import all kinds of documents in various formats such as PDF and other image files. Datasnipper’s sophisticated text recognition software will enhance the files, allowing you to click through them and perform tests of controls, walkthroughs, and various other testing procedures. Using the different ”snipping” tools in Excel, you can link different bits of information of the uploaded documents to your Excel workbook, automatically cross-reference your data with supporting evidence from other files, easily extract specific info from documents and validate parts of the documents using a green highlight or indicate sections of a document that require further analysis using a red highlight.
What about you, Sara? Are you using any cool tools to make your life easier?
Sara Labban: I am actually! We’re using a super powerful automation tool that makes the audit process much easier and more effective. It helps auditors gather and combine data from different sources, like company systems, spreadsheets, and cloud applications, so they can look at everything together. As a result, auditors can quickly clean up and organize this data, fixing any mistakes or gaps automatically. It also saves time by handling routine tasks like pulling and processing data, allowing us to focus on more complex parts of their job.
Beyond just cleaning, preparing, and organizing data, we can perform statistical analysis, predictive modeling, and data visualization which allows us to spot trends, find unusual patterns, and identify potential risks. This gives us deeper insights which allows us to identify and correct inconsistencies, remove duplicates, and handle missing values, ensuring the dataset is reliable. We can also easily collaborate with team members by sharing workflows and findings in one place, which improves communication and teamwork!
Hmmm, this tool sounds exactly the same as Paul’s …
Sara Labban: I know, but it isn’t! Imagine planning the ultimate party. You have recipes, shopping lists, and RSVPs scattered across different sticky notes, emails, and WhatsApp groups, causing hours of organization stress. But what if you had a magical helper who instantly gathered, analyzed, and organized all these details? You'd have everything from weather forecasts to snack reminders in one place, ensuring a smooth party (or audit) without any unwanted surprises or forgotten items!
Another fun feature of my tool is that it builds workflows that can be saved and used every quarter or year. You simply need to change the raw data in excel and everything is updated within a matter of seconds! Using this party as an example, you could basically adjust the number of people, date, theme, and you’d be set to organize another party whenever you want!
Now we’re talking! How have both tools made a difference in your line of work?
Paul Dreezen: Our teams no longer spend hours and hours doing boring manual tasks anymore and can focus on the audit risks that matter. I sleep better at night, and so do my clients!
Another fun feature of my tool is that it builds workflows that can be saved and used every quarter or year. You simply need to change the raw data in excel and everything is updated within a matter of seconds! Using this party as an example, you could basically adjust the number of people, date, theme, and you’d be set to organize another party whenever you want!
Sara Labban: The same goes for me! Thanks to automation, I now have more insights into the data I’m working with, allowing me to perform more thorough, accurate, and efficient audits!
Revolutionizing Auditing: Embrace the Future with AI and Automation
Auditors are breaking free from outdated stereotypes and embracing cutting-edge technology. Discover how AI and automation are revolutionizing the auditing world, making processes faster, more accurate, and significantly more efficient.
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