INP-WealthPk

Remote Audit Emerging as Vital Ingredient of Digital Economy

February 18, 2022

By Omer Bilal ISLAMABAD, Feb. 18 (INP-WealthPK): Digital technology is rapidly growing across diverse fields, including blockchains, capital market and artificial intelligence. The world is now entering the 4th Industrial Revolution and technology is considerably changing its way, especially in the development of the domestic economy. COVID-19 pandemic has changed the priorities of businesses. Transforming towards digitalisation has become a new trend in small and medium entrepreneurship. Digitalisation of audit is an upcoming level in the field of auditing, which is improving the quality in the audit industry as a whole. The COVID-19 pandemic forced many businessmen to change their priorities for their businesses. Thus, companies that have traditionally provided services offline are trying to adapt their services to a new outline. Despite the adverse impact of the pandemic on the world economy, it meaningfully accelerated the development of digitalisation. To protect public interest in audit quality, the Audit Oversight Board (AOB) and the World Bank have launched an Audit Committee Toolkit that explains the international best practices for audit committees in fulfilling their role and responsibilities. On the other hand, the AOB is also taking concrete steps to adopt online patterns for inspection of the companies and maintain compliance with professional standards amongst the firms engaged in the audit. In the words of AOB spokesperson Falak Raja, good financial reporting is a needle of good corporate governance. The audit will result in effective, secure, and reliable performance across all government and corporate business processes. She said the Board is committed to meeting the technical needs of the audit firms, embracing change and equipping them to adapt to the evolving and expanding professional requirements. The audit function is a key element of good governance and accountability in both public and private sector organisations. Auditors play a critical role in protecting organisations and promoting governance, risk management, and controls. The spokesperson said quality assurance requires a mandatory review system for firms performing audits of financial statements. She said emphasis should be made on e-auditing, which is computer-assisted auditing, in audit firm and corporate sector, which is very useful to maintain electronic records and meet all needs of the audit. Usman Hayyat, former CEO of the AOB, said digital technology is a continuous transformation process, while digital audit or remote auditing addresses appropriate problems of a company's internal and external auditor. “It protects concerns of stakeholders, provides audit quality and transparency, and sorts out all disputes with clients,” he said. Usman Hayyat said the optimal use of audit management systems and collaboration tools of online audit can also improve the audit function’s own processes. He said auditors must develop their own skills in this age of digital transformation so that they enjoy the knowledge and expertise necessary to provide high-quality technology-based audit. Audit firms in the light of digital transformation need to improve their parameters according to modern lines. E-audit is now commonly practiced in most corporate bodies.