A report tilted Audit 2020: A Focus on Change from Forbes Insights, found 58% of respondents believing technology to have the biggest impact on the audit profession, a core domain of chartered accountants (CAs), in the coming days.
As CAs venture outside their traditional service offerings into business management, enterprise risk management, international taxation, and fraud detection among others, here’s how adopting technology would help them boost their practice, enhance revenues and increase customer satisfaction.
Better analysis of data
Meaningful data extraction and analysis are crucial to formulating strategic business decisions. A challenging business environment coupled with increasing complexities mean dissection of more complex data, which can be done better only through advanced technology such as AI, Big Data and machine learning.
Better data analysis leads to efficiency in operations, highly critical for success. All the above-mentioned technologies help CAs better identify financial reporting and operational business risks and tailor their approach accordingly to deliver optimum levels of service required. Notably, the Audit 2020 report found 59% of respondents acknowledging the efficiency technology brings to the table.
Setting up the infrastructure for analytics solutions comprising data servers, monitoring tools and the network can cost anything between Rs.90 lakh to a crore. This cost can be offset with a customised Business Loan for Chartered Accountants offered by various financial institutions in the country.
Offering a high loan amount with minimal documentation, this loan designed especially for CAs comes with a Flexi Loan facility whereby one can withdraw funds as and when required from the approved loan limit with interest being charged only on the amount utilised and not the entire limit.
This keeps EMIs low and leads to better management of finances. The interest rate offered by a CA loan is competitive and you don’t need to pledge collateral to avail finance.
Bring down errors and better detection of fraud
Chances of errors are high in a job involving complex numbers. Even a minor error can have long-term financial implications on the reputation of a firm. With technology in place, CAs can bring down the chances of manual errors and detect irregularities, failing to do which can even lead to suspension of their services.
Recently, the Securities and Exchange Board of India (SEBI) banned one of the big four audit firms for two years from auditing listed companies in India because of its failure to detect fraud of over USD 1 billion in one of the country’s premier IT services company. Even across the globe, auditors have had to face disciplinary actions for failing to detect fraud.
Improve the quality of services
Through technology such as cloud-based systems, CAs can improve the quality of their service by remotely connecting with their clients anytime without the need for on-site consultation. This is essential to fostering long-term relationships.
Cloud systems coupled with web-hosted video conferencing help both parties to view and edit data in the most convenient manner. This leads to greater efficiency in client transactions and enhances the overall quality of services.
To remain competitive and relevant, CAs must adopt advanced technologies into their practice that would help them to stay on the top of their game.