Robotic Process Automation/Audit.

Future of Audit!
Visualize This:

1. An organisation has installed a new system.
2. This system integrates with your ERP system, Payroll, CRM and other important system.
3. It goes through transactions, identify exception based on business rules, authority matrix, misalignment of rules/ authority across system, report exceptions in audit management system, alert operational management, allows senior management to monitor these exception.
4. All these activities are happening without human intervention.
5. This organisation may/ may not have an internal audit function. In case it has, it may be most likely be staffed by one person.

In the IIA 2018 International Conference held at Dubai, an exhibitor has put up an Video demonstrating all these activity.

The future of audit has arrived.

Interestingly robotic process automation/audit (RPA) has made me took a pause and reflect. I realized that RPA is happening around me and instead of thinking about a new wave, I had misunderstood as development of tools. The same exhibitor has developed few tools in the past which eliminates/ reduces the human involvement in audit process. A tool for performing system audit has reduced the need for human system auditor for doing some specific audits. Another tool for analysis has reduced the need for entry level analysts doing basic analysis.

What was common in these tools?

1. Processes were repetitive.
2. Processes were low value adding (though essential)
3. Processes were fairy easy as far judgement is involved.

Impact of RPA: The need for enhanced skills has come up, to meet new challenges. The average level of skills required had risen sharply.

Yesterdays advanced skill is the today’s average.

Note: In case you want to visit this exhibitor, visit www.anbglobal.com
References:
Accounting for Artificial Intelligence or Artificially Intelligent Accounting?
Are data robots coming to replace auditors?
A Primer on Robotics
Robotic Process Automation (RPA): A primer for internal audit professionals

Call for action:

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(Disclaimer: The views expressed constitute the opinion of the author and the author alone; they do not represent the views and opinions of the author ’s employers, supervisors, nor do they represent the view of organizations, businesses or institutions the author is, or has been a part of.)