Question

5. Technology is playing an increasing role in audit work. Explain the benefits and potential disadvantages of using technology.

SECTION B Answer ONE question and NO MORE THAN ONE further question from this section. Each question is worth 25 marks. 5. Technology is playing an increasing role in audit work. Explain the benefits and potential disadvantages of using technology. Explain what this term means, wh auditors can do assess the going concerns and the difficulties they lace in making the assessmenu. There has been much talk in the UK on the future audit How do you think the rofession and the audit process might develop over the next 10 years amine the role Saudi Your answer should address following That do they do? qualities lected on What are the benellis or having audit committees

Answer 1

Nowadays many auditors provide paperless audits by using the technology. There they access electronic records and issues final audit report via email or a website. Electronic audits helps the small-business owners to save time and money.

Advantages

• The primary advantage of using technology in audits is the increased speed and accuracy. The auditors can test bulky volumes of database in short time and with accuracy
• Technology helps in improving the efficiency and reliability of the auditor's work. It reduces the complexity of audit work
• It is easy to detect fraud and to ensure continuous monitoring with the technology
• It is easy for the auditors to prepare report and to communicate to the clients on time.

Disadvantages

• Use of computerised models in auditing requires frequent updates and customization. A particular model will be suitable for some special purpose only
• In order to use the computers in auditing, the auditors must be trained on how to use it correctly,
• Installation and training requirements involves high costs in time and money for auditing firms.
• Complexity of implementation technologies is the another disadvantage
• Certain decisions which are based on the information the auditor has and the auditor's experience with similar companies is not possible if the auditing is computerised
• When using technology, security issues may arise. So security factors must be considered.