Digital GAM focuses on simplifying tasks and improving linkage from one audit procedure to the next. Powered by EY Digital Audit technology, automated techniques are embedded in phases of the audit, analyzing information across an organization’s “business cycle,” or the flow of financial activity that results as an entity operates its business. The correlations and relationships between different sets of data throughout the business cycle demonstrate how the organization has recorded the transactions and help EY auditors better identify areas of risk and how to respond to those risks.
Digital GAM requires a change in mindset and approach from EY auditors. Some changes are tactical, such as new audit tasks, refocused approaches to journal entry testing and the online availability of standard audit forms, templates and checklists. Other changes, however, are more strategic and require a deeper change in behavior and overall approach, such as enhanced mentorship, which will enhance quality and professional skepticism.
Another area where simplification and innovation are working in tandem to enhance audit quality is emerging technologies. In this dynamic working world, companies are harnessing a range of such technologies in their efforts to adapt and grow.
It is the same for EY. Stakeholders expect auditors to deploy the latest technology to better understand businesses and the risks they face. That’s why EY teams are leveraging emerging technologies as part of the connected, data-driven audit.
For example, artificial intelligence (AI) is an increasingly important tool in the delivery of a high-quality audit. A range of tools has been developed that use AI, such as Document Intelligence for Contract Review, which enables audit teams to review business documents more effectively by leveraging machine learning technologies.
The benefits include improved speed and accuracy of reading and interpreting contracts. It is estimated that the time taken to review documents is decreased by 60%-80%, allowing audit teams to focus on judgments, higher-value activities and relationships with key stakeholders.