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AUDITING

Winslow CPAs in Upper Marlboro, Md. Her firm’s automation (RPA) or even basic automation tools
integration of artificial intelligence (AI) into its audit allow the firm to perform these tasks more ef-
processes was a three-year journey. It began with ficiently and effectively.
testing the technology with one client, then adding They automated some of the standard engage-
more clients the following year, and then overhauling ment letters and post-audit letters that they send to
the audit processes for the entire firm the third year. their clients. They are developing processes to use
“People think that you adopt a technology and machine learning to scan contracts and summarize
within three months you’re running with it and some of the key terms in those contracts to make
you’ve changed all your processes and you’re chang- the analysis easier. In general, automation is useful
ing everything dramatically, and that’s not the case,” for auditors (and preparers) when dealing with large
Bowling said. volumes of contracts that contain data needed to
perform accounting under FASB’s new revenue
THINKING DIFFERENTLY recognition and lease accounting standards.
For successful implementation of technology and The firm also is working on automating its
analytics, it’s important also to have staff prepared billing process to make invoicing more seamless and
to think differently about the audit than they did effective for clients. But the work is not finished, and
in the past. To that end, Aronson embarked on its Langelli considers it to be a journey that will take
transformation by having the assurance partners time to complete. The evolution of technological
and other audit team members undergo training on innovations as well as professional standards will
establishing a digital mindset. enable more digital processes over time.
Within each of the firm’s assurance and tax busi- For example, the AICPA Auditing Standards
ness units, Aronson also has established innovation Board’s new risk assessment standard includes
business optimization committees. Team members’ extensive guidance regarding the use of technology.
ideas for specific improvements are presented to “Part of what’s next is always being on top of
these committees, which evaluate and assess the best where things are in the evolution of our profes-
opportunities for the firm to pursue. sional standards, in the evolution of technologies,
Aronson team members look for static tasks, but clearly incorporating on a much deeper level,
processes, and deliverables that don’t have a lot of AI machine learning, data analytics, into our audit
nuance or don’t change much. Often, robotic process process,” Langelli said.

EVALUATING OPPORTUNITIES
Schneider Downs, meanwhile, has a dedicated
AICPA RESOURCES Automation and Data Analytics Process Team
Articles that goes by the acronym ADAPT and evaluates
automation opportunities.
“PCAOB Issues Staff Guidance on Audit Evidence From Other Sources,” JofA, “We have a dedicated group of people who are
Oct. 7, 2021
focused and who are specialists with different pieces
“Making Audits More Effective Through Data Visualization,” JofA, May 2021 of technology or different software that looks to
“Wanted: More Systems and Analytics Training for Accounting Students,” implement technology-driven solutions to the audit
JofA, March 12, 2021 process,” Cardiello said.
An internal I-ADAPT group focuses specifically

IN BRIEF value-added services to clients. doesn’t happen overnight, and it takes
■ To be able to take advantage of the dedication and perseverance on the
■ Technology and digital analytics tools that are available, firms need to part of staff to identify opportunities
provide auditors with an opportunity make sure their people are trained to to take advantage of the technology.
to improve risk assessments and the use them. Staff members need to be Some firms have dedicated teams or
effectiveness of their engagements. trained to think differently than they committees to spearhead automation;
These tools can result in better audit did in the past. finding the right data is an important
quality and a chance to deliver more ■ Automation of tasks in the audit step.

10 | Journal of Accountancy February 2022