External audits are key to ensuring accurate and reliable financial reporting. But let’s face it—they often involve repetitive, time-consuming tasks that leave auditors burned out.
Automation is here to change that. By taking on the heavy lifting, automation tools free auditors to focus on what really matters: high-value analysis, smarter decisions, and delivering real insights. According to Deloitte, accounting and finance are the areas where automation is most commonly used, driven by the need for accuracy and the prevalence of repetitive tasks.
In this article, we explore 8 ways automation reduces repetitive tasks and transforms external audits for the better.
Index:
- Data Collection and Validation
- Data Extraction and Entry
- Document Analysis and Anomaly Detection
- Financial Statement Reviews
- Risk Assessment
- Compliance Monitoring
- Draft Audit Reports
- Predictive Analysis
1. Data Collection and Validation
One of the most repetitive tasks in external audits is collecting data and documentation from clients, often through countless email exchanges. Automation tools can:
- Send automated document request emails with clear instructions and deadlines.
- Instantly validate data for accuracy and flag missing or inconsistent information.
By consolidating document collection and validation into an automated workflow, auditors save significant time and reduce delays caused by incomplete or incorrect submissions. With automated workflows, auditors skip the chaos and start audits on solid footing. Less chasing, more doing.
2. Data Extraction and Entry
Manually extracting and entering data from invoices, contracts, and bank statements is error-prone. Automated data extraction tools:
- Pull relevant data directly from scanned or digital documents.
- Populate templates or systems with the extracted information seamlessly.
These tools can process vast amounts of information quickly, reducing human error and improving consistency. Auditors can focus their efforts on interpreting the data rather than processing it, improving overall audit efficiency.
3. Document Analysis and Anomaly Detection
Automation brings efficiency to complex procedures such as:
- Tick and tie verification.
- Sampling and testing of financial transactions.
- Recalculations to confirm the accuracy of reported figures.
AI-powered tools analyze huge datasets in no time, flagging patterns or anomalies that need attention. This allows auditors to focus on the most critical findings, enhancing the depth and quality of their document analysis.
4. Financial Statement Reviews
Reviewing financial statements manually can be like searching for a needle in a haystack. Automation:
- Cross-checks numbers across documents.
- Highlights inconsistencies or areas needing a closer look.
By leveraging automation, auditors can conduct comprehensive reviews in a fraction of the time, ensuring that inconsistencies are identified and addressed promptly.
5. Risk Assessment
Risk assessment is critical to audit planning. Automation can:
- Analyze historical audit data to identify risk patterns.
- Spot unusual transactions or high-risk areas based on predefined criteria.
With automated risk assessment, auditors can work smarter by focusing their time and resources where it really matters. This targeted approach makes audits more impactful and equips clients with practical, meaningful insights.
6. Compliance Monitoring
Regulatory compliance is a cornerstone of external audits, but monitoring can be overwhelming. Automation tools:
- Perform real-time compliance checks against relevant standards or frameworks.
- Flag potential violations or non-compliance issues immediately.
By ensuring continuous compliance monitoring, auditors can reduce oversight risks and focus on resolving critical issues. Automation provides a more reliable and thorough compliance process.
7. Draft Audit Reports
Drafting audit reports can take significant time and effort. Automation tools:
- Generate initial drafts based on standardized templates and collected data.
- Include auto-generated visuals, such as charts or graphs, for enhanced clarity.
By automating the drafting process, auditors can create professional, accurate reports faster. This gives them more time to fine-tune the narrative and deliver insights, ensuring clients receive a polished, high-quality final product.
8. Predictive Analysis
Automation is not just about efficiency; it’s also about unlocking valuable insights. Predictive analytics tools:
- Forecast trends and risks based on historical data.
- Provide actionable insights to help clients plan for future challenges.
With predictive analysis, auditors can evolve into strategic advisors, uncovering key insights that inform smarter and more proactive decision-making. By anticipating risks and opportunities, auditors can deliver proactive insights that add long-term value for clients.
Conclusion
Automation is not about replacing auditors; it’s about empowering them. By taking over repetitive manual tasks, automation allows auditors to focus on high-risk responsibilities such as interpreting data, providing strategic insights, and building trust with stakeholders.
If you’re stuck in manual workflows, it’s time to explore the right tools and take your audits to the next level. Efficient. Accurate. Insightful. That’s the future of external audits.
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