Auditing in the New Age of Industry 4.0

Abstract

As the world moves towards a knowledge-based economy, technology is rapidly becoming a necessity. As a result, Industry 4.0 is gradually changing the face of many aspects of human endeavour. From manufacturing to construction and business, data analytics, blockchain, and artificial intelligence, among other things, look promising and may bring a paradigm shift within the accounting profession. This may be significantly drawn towards auditing. While technological changes seem rapid, taking giant strides towards revamping the accounting industry via modern kinds of audit evidence and testing, it is important to tread cautiously in the adoption of technology for auditing. This is because even though technological improvements are useful to achieve speed and accuracy in the audit work, they pose challenges of causing loss of jobs, difficulty in tracing errors, and other potential problems. This paper, therefore, looks at some recent technological development in audit work, and why this aspect of the accounting profession may require further research.

Intellectual capital in accounting and auditing: Assessing the alignment of continuous professional development programs with emerging skills

“…Rapid technological advancements and shifts in business models are fundamentally altering the landscape of accounting and auditing. Amidst concerns over job redundancy due to automation and other forms of disruptive technology, there's an increasing emphasis on the need for professionals in these fields to acquire new skills for continued relevance in the job market (Adnan Allbabidi, 2021;Nwachukwu et al, 2021). Leading accounting firms are already integrating digital technologies like artificial intelligence to improve audit judgments, despite challenges related to technological adaptation, organizational readiness, and environmental factors (Bonsón and Bedná rová , 2019).…”

The Impact of Big Data Analytics and Forensic Audit in Fraud Detection

“…Forensic audit is believed to be an effective method to detect and reveal fraud. In fact, forensic audits can also increase the effectiveness of using technology in the form of big data in order to detect fraud [5]. The combination of the use of big data and forensic audits will be an effective solution to resolve agency problems in the form of fraud that is rampant to this day.…”