A(i) for audit?

23rd October 2018

Technological advances in the ways that data is captured, processed, stored and communicated continually change the ways in which we do business. In the context of auditing, data analytics concerns the process of extracting, transforming, validating and analysing large volumes of data to make judgements and form conclusions.

The way we approach auditing must change to address such change. The roles and processes of auditing, and the people working in this area will remain the same, but the way audits are conducted must change to address these new realities.

Some recently released software tools claim to be able to analyse 100% of accounting transactions rather than taking a sample. Using a mixture of artificial intelligence, statistical models and rule-based tests, the claim of 100% transaction analysis could deliver far greater assurance and allow the auditor to prioritise items requiring further investigation.

According to the ICAEW, “…accountants are well placed to work effectively with data analytics, as they combine high levels of numeracy with strong business awareness. These trends will accelerate with AI.”

With such developments accountants will be better positioned to analyse and understand client data and thereby provide enhanced added value advisory services to clients.



 
Other items in Blogs
 
Richard Alecock
24th May 2019 Making Tax Digital for VAT: Supplier statements now acceptable

In a welcome about turn, HMRC has changed its controversial policy on the recording of purchase invoices under Making Tax Digital for VAT. This will mean a huge time-saving for many businesses using the cash accounting scheme.   Under the cash accounting scheme, input tax is only claimed when payments are made to suppliers, and…

Read More »

Hannah Wisbey
22nd May 2019 Reform of Companies House Register

The government is consulting on proposals to significantly change the role of Companies House, with the aim of ‘increasing the transparency of UK corporate entities and helping combat economic crime’.   The consultation considers reform to: the information that companies are required to disclose increasing the checks on the information disclosed measures to improve the…

Read More »

Matilda Mawson
20th May 2019 Property allowance considerations: Joint properties held in unequal proportions

The property allowance was introduced on 5 April 2017, allowing a flat rate deduction of £1,000 to be claimed against property income, in lieu of keeping detailed records of expenses. This however, raises the question as to whether individuals renting out a joint property are required to make the same claim as one another. In…

Read More »

Bethan Hassey
20th May 2019 RSM’s Zorb Football Tournament

  On Thursday 16th May, Whitings attended RSM’s first ever Zorb Football Tournament in aid of the charity GeeWizz! After playing against 5 other firms, Whitings managed to finish 2nd overall based on goal difference.   It was a great event which helped raise money for a great cause. GeeWizz help support children and young…

Read More »

Matilda Mawson
16th May 2019 2019/20 Changes to Personal Tax and How It Could Save You Money

With the new tax year in full swing, we set out below some of the changes to various allowances and tax bands that affect how much tax you are paying: The personal allowance (the amount you can earn before you begin paying tax) has increased from £11,850 to £12,500. The basic rate tax band has…

Read More »

Jodie Tarbin
14th May 2019 PPR and Lettings Relief: an Update

Shortly following the last autumn budget, I published a blog “CGT Reliefs – Hit with Both Barrels!”, regarding the changes announced to the Principal Private Residence Relief (PPR) and letting relief rules.   HMRC have now published a consultation document, which can be found here: https://www.gov.uk/government/consultations/capital-gains-tax-private-residence-relief-changes-to-the-ancillary-reliefs   The consultation period closes at 11:45pm on 1…

Read More »