Sharmishta Byragani, Manager, Ernst & Young LLP, UK, says:
“During the six years I have been an auditor for EY, data analytics and other technologies have led to a major shift toward new ways of working.
“We deal with vast amounts of data. In the past, it could be time-consuming to sift and validate this data. Now, data analytics and artificial intelligence do much of this work for us, which increases effectiveness and drives a quality audit.
“The biggest change is that analytical tools can look at the whole data set, not just a small sample, which enables us to ask better questions. For example, we can look at correlations in data from revenue and trade receivables to cash. If we see an inconsistent flow in one month, we can focus in and find out what was happening in that period.
“It also means we get a better understanding of how companies work before we talk to them, rather than asking them to pull out all the detail and sifting through it together.
“All this has implications for the required skills when recruiting auditors and the way they are trained, as the job is now much more focused on analytical skills.
“It has also led to a change in my own role and skill set. For example, when evaluating results, I need to be able to look at the correlation analysis, understand what the data is telling us and make the right conclusions based on my knowledge of the company. It’s a learning curve, but it is exciting and enjoyable, and I love being able to add value in these new ways.”