{"id":120037,"date":"2023-12-04t11:00:14","date_gmt":"2023-12-04t16:00:14","guid":{"rendered":"\/\/www.g005e.com\/?p=120037"},"modified":"2024-08-27t17:00:27","modified_gmt":"2024-08-27t21:00:27","slug":"alan-anderson-aa-can-no-longer-mean-audit-accounting-anderson","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/12\/04\/alan-anderson-aa-can-no-longer-mean-audit-accounting-anderson\/","title":{"rendered":"turning audit & accounting into assurance & advisory"},"content":{"rendered":"
<\/p>\n
to remain relevant, we must change the meaning.<\/strong><\/p>\n by alan anderson as i see it, audit is at a crossroads. on one path, audit will keep going the way it has for the last decade or so. it will become so irrelevant and commodified it will vanish. fees will drop so low that no one will be able to afford to be in the audit business. plus, technologies like artificial intelligence and blockchain will be able to do what we\u2019re doing now, only better, faster and cheaper. that might not happen for another 15 years, but that is coming.<\/p>\n more:<\/b> is audit in crisis because of definitions?<\/a> | stop sending the wrong message to audit teams<\/a> |\u00a0the big issues in audit: frustration, inconsistency and technology<\/a> | talent retention: five tips for an audit adjustment<\/a> |\u00a0the ten financial controls that\u2019ll make you a hero<\/a>\u00a0|\u00a0five cash reports you can\u2019t live without<\/a>\u00a0|\u00a0when an audit is a great thing<\/a> but there\u2019s another solution \u2014 we can drive change positively for our profession. this change won’t happen overnight. \u00a0i want to encourage us to really think about driving that change because we can influence it quite dramatically.<\/p>\n <\/p>\n moving a&a from audit and accounting to assurance and advisory<\/strong><\/p>\n i like to use the diagram above when i talk to firms about what moving into the future of a&a looks like. in the current state, audits have been heavily focused on compliance, so a&a is audit and accounting. auditors are the resource to ensure companies are doing their accounting correctly and comply with gaap and the rules set out by the various regulatory agencies. there\u2019s not a tremendous amount of value or customer service included in what audit and accounting provide. the product of your work is not terribly distinguishable from the audit firm down the street. it\u2019s a commodity. and if your firm remains here, it won\u2019t be around much longer because pure compliance work is on the way out.<\/p>\n moving to the right to audit and assurance means that your orientation shifts from pure compliance to client service. you get there by applying a data orientation to your audit and by using tools that provide assurance. these data tools give you another way to look at a client\u2019s data in aggregate so you can see patterns and trends that are invisible when you look at the historical financial statements. these data tools can be simple things like doing an excel regression analysis of inventory pricing. they can also be as complex as a data analytic algorithm or a tool like mindbridge that looks for outliers in a data set.<\/p>\n sooner than we may want to believe, we will have tools that will allow us to provide real-time assurance, which will help us move into advisory. we\u2019ll have real-time dashboards that clients can use to monitor financial activity as it happens. auditors will deploy ai bots in their clients\u2019 systems that will identify transactions that don\u2019t make sense as they happen. the auditor will get an alert so they can talk to the client about it and decide whether a transaction is appropriate.<\/p>\n assurance is more contemporaneous. assurance goes beyond making sure the numbers are right and adds the component of \u201cdoes this transaction make sense?\u201d at this level, tech tools replace the ticking and tying and the detailed manual work that\u2019s needed to accomplish the compliance part, while the auditor provides assurance on the outputs of those ai tools. through the simple use of those tools, you automatically become more knowledgeable about the business. you communicate more ideas and suggestions to the client that become more of a value add. you\u2019re also moving the dial from less of a compliance focus to more of a client service focus.<\/p>\n as you move that dial of client service even more, you move fully into assurance and advisory. in that end state, you become what your clients really want, and that\u2019s the trusted advisor role. your clients see more of the value that you bring to the table. the compliance part of what you do is significantly muted because, in the future, compliance will be monitored by systems, whether it\u2019s bots, ai or something else, so there won\u2019t be much of a need for humans to verify that companies are in compliance. i guarantee that any company getting value from their auditor today has far less of an issue with the cost of an audit than a company just getting the basic compliance from their audit firm.<\/p>\n","protected":false},"excerpt":{"rendered":" to remain relevant, we must change the meaning.<\/strong>
\ntransforming audit for the future<\/a><\/em><\/p>\n
\nexclusively for pro members. <\/span>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
\n<\/a>
\nby alan anderson
\ntransforming audit for the future<\/a><\/em><\/p>\n","protected":false},"author":5075,"featured_media":120038,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3925,3120,3002],"tags":[2394],"class_list":["post-120037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit-assurance","category-pro-member-exclusive","category-special","tag-audit"],"acf":[],"yoast_head":"\n