With the development of computer technologies, the auditing profession has changed significantly. Before the appearance of different applications and software, auditors had to perform all the auditing operations manually. However, information technologies (IT) facilitated these processes, changing the means and the approach to the profession. Nowadays, auditors are doing tasks using computer applications because current technologies make their work faster, more efficient, and cost-effective, and they produce less waste.
The electronic auditing systems enhance the speed of the auditing process and allow auditors to share the reports with different users immediately. The fast speed of retrieval of data stored in the computer memory allows reviewing the observations and operations quickly and efficiently. The internet-based technologies give the possibility to retrieve data from any place in the world, using cloud-based accounting.
Cloud accounting is an online accounting system that enables customers to utilize computers and other devices to attain accounting functions (Yoon, 2020). The use of blockchain-based platforms, where data are saved in blocks and linked with the help of cryptology, makes all financial transactions faster and safer too (Yoon, 2020). All these and other technologies are important because they accelerate all financial and auditing processes without compromising quality.
Besides, computer applications and software ensure the accuracy, certainty, and efficiency of the auditing processes. Nowadays, one auditor may use multiple automated accounting software for creating financial reports and analyzing data from different customers at the same time. Moreover, electronic software helps detect errors or fraudulent transactions quickly, enhancing the efficiency and quality of auditing processes. Historically, auditors made all calculations and analyses manually, which was not always accurate. Fraudulent activities were more frequent because it was easier to feign the data or lose auditing books or financial reports.
At present, fraudulent activities are also possible, but they are easier to detect and control because the information is stored in computer databases and can be checked quickly. Alshahairi and Alhosban (2019) discovered that the account control systems can detect deviations before they even occur, allowing the company “to correct the course of deviations and mitigate the negative risks” immediately (p. 206). Evidently, if all these operations were conducted manually, the results would be different, and the company could incur losses.
Finally, computer applications and software are cost-effective and produce less waste than traditional auditing. Manually written reports and auditing books are numerous, and they require a lot of resources and a place to store. Electronic data can be saved on magnetic discs, magnetic tapes, or in cloud storage. These tapes and disks take up little space and preserve the environment because the paper is no longer needed.
Besides, delivering audit reports to the customers is faster and cheaper nowadays because all data is delivered via the Internet. Thus, the companies do not need to use letters and couriers, saving costs and decreasing the amount of waste. Moreover, the low cost of advertisements is another advantage of electronic software because the companies can expand the information about themselves and attract new investors through the Internet too. These advantages make the use of computer applications in auditing more popular and widespread.
One can see that modern technologies improved the auditing process, making it easier, faster, more efficient, and cost-effective. Even though computer applications and software may have some disadvantages and flaws, they facilitate the work of auditors and make business more transparent. In conclusion, doing audit tasks with the help of current technologies leads to accuracy in performance, quick detection of errors, and fast delivery of reports.
References
Alshahairi, M., & Alhosban, A. A. (2019). The impact of the use of computer technology and auditing software on the efficiency of external auditors in Jordan. International Journal of Business and Economics Research, 8(4), 201-210. Web.
Yoon, S. (2020). A study of the transformation of accounting based on new technologies: Evidence from Korea. Sustainability, 12(8669). Web.