Audit Failures and Current Trends in Auditing Essay

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Technological developments have revolutionized auditing among organizations. Auditing involves regular analysis of a company’s operations and maintenance of rigorous internal systems. While in the past auditors lacked sufficient tools to audit organizations, the current technological advancements have led to the development of effective auditing approaches. The article “Big Data and Artificial Intelligence in the Fields of Accounting and Auditing: A Bibliometric Analysis” by María A. Agustí and Manuel Orta-Pérez explores two major trends in auditing: big data analytics and artificial intelligence (AI) (2022). The integration of big data and AI is one of the developing approaches in auditing.

Auditing involves the analysis of various data that can help organizations identify loopholes in their systems. Therefore, data processing is crucial among auditors since it gives accurate results and exact business position (Agustí & Orta-Pérez, 2022). Big data involves processing information that is too complex to be dealt with by the human mind or traditional data analysis techniques. Modern technologies have led to the advent of smart systems that can analyze complex data for companies. Organizations have adopted complex systems to conduct auditing and yield accurate results (Agustí & Orta-Pérez, 2022). Meanwhile, AI in auditing includes automated and digitized systems that make auditing easy (Agustí & Orta-Pérez, 2022). The AI-enabled and automated auditing software can collect business data over a specific duration, and identify loopholes for fraud. Therefore, big data analytics and AI integration have made auditing more effective and efficient.

Although big data and AI are crucial trends in auditing, the use of big data is more concerning. The big data trend is more concerning because of two reasons. First, handling business data can be beneficial and detrimental to organizations. Integrating software that utilizes business data should be done only within the precincts of the law. However, the question arises of the legality of collected data that is used in auditing. Second, software programs that enhance complex data analysis are expensive. The future of small and less profitable businesses is at risk since they cannot afford expensive software programs. I believe that big data analytics in auditing is economically ineffective for small businesses.

However, the article changes my opinion since it accounts for the development of software programs that are suitable and affordable for small businesses (Agustí & Orta-Pérez, 2022). Therefore, technological integration in auditing activities is beneficial for small and large businesses.

Reference

Agustí, M. A., & Orta-Pérez, M. (2022). . Spanish Journal of Finance and Accounting, 1–27. Web.

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IvyPanda. "Audit Failures and Current Trends in Auditing." March 21, 2024. https://ivypanda.com/essays/audit-failures-and-current-trends-in-auditing/.

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