Impact of IT on Audit

Fact

• Research shows that using information technology, including Computer-Assisted Audit Techniques (CAATs) and data analytics, can improve audit efficiency and effectiveness. fardapaper.ir+3growingscience.com+3mdpi.com+3

Elaboration – Positive Impacts

1. Efficiency

   • IT tools can quickly extract, sort and analyse large data sets, reducing manual work.

2. Effectiveness & quality

   • Auditors can perform more tests, detect anomalies, and obtain stronger evidence (e.g. testing 100% of transactions). dl.acm.org+1

3. Better risk assessment

   • Data analytics helps auditors identify high-risk areas (e.g. unusual journal entries, outlier transactions).

4. Remote auditing

   • Cloud systems and secure access allow auditors to work remotely, especially important after COVID-19.

Elaboration – Challenges

• High cost of IT tools and training. baitalzakat.com
• Need auditors with strong IT knowledge; skill gap can be a problem. mdpi.com+2researchgate.net+2
• Risk of over-reliance on automated tools without enough professional judgement.

Example

• Auditor uses CAATs to:
  • Import all sales transactions;
  • Identify those recorded on Sundays, public holidays, or just before year-end;
  • Focus audit work on these high-risk items.

• This is faster and more complete than checking 30 invoices manually.