15 February 2017
TOWARDS MINIMUM AUDIT RISK
With the new information available in a highly automated world, the audit will place its greatest focus on risk, failing to conduct sampling testing to analyze up to 100% of the data. Everything suggests that companies will have better and faster quality reports, even in real time.
Changes in the way of auditing have been perceived in recent years. The risk-oriented approach is being prioritized today as it involves more efficient work. This includes both the inherent risks of economic activity and the risks of control. The greater complexity in the way of doing and structuring business requires greater expertise to evaluate the valuations of non-financial assets and their recoverability, that's to say, their ability to generate future income.
Valuable assets continue to exist for companies that cannot be recognized for accounting purposes, such as self-generated brands.
In the future the risk will be focused more efficiently with the new information, sampling will no longer done and it will be possible to analyze 100% of the data. The audit moves toward having more and better quality information in less time (in real time). This will result in fewer risks and less costs.
From the environment and disruptive dynamism introduced by the new Information Technologies at all organizational levels, the Audit activity must follow this process of rearrangement to be competitive in the market.
The trend of the audit is to minimize the risk of the work by using technological tools of high quality, in the cloud, and low cost for the benefit of the client. On the other hand, professionals must be highly trained to provide the client with operational and strategic solutions in order to help them meet their growth plan.
Professional services firms have to provide the services the market demands and companies, for more than 20 years and in order to avoid the ceasing of activity, have to reinvent themselves by taking advantage of the latest development in IT to offer new innovative products. This is the main reason why more and more professional firms should continue their growth by offering audit and consulting services.
Diego Caride Fitte, Managing Partner, Auren Argentina