Audit regulation requiring overhaul, says big four firm
With the development of audit technology moving at a rapid pace, the regulators may need to reassess the current standards and regulations for auditing, says one of the big four accounting firms.
EY wealth and asset management leader Antoinette Elias says the auditing standard and the regulators are struggling to keep pace with the changes happening in the audit space.
Ms Elias said regulators need to consult with the industry about how processes are being automated and how new regulations could be implemented.
“This would also act as an impetus if regulatory changes are required to keep pace with technology changes, if the regulator is hearing from the right people and is informed during that process,” she said.
As the industry looks increasingly to technology-enabled audits, individual organisations should also take the initiative to ensure quality and customer service are not compromised.
The processes around privacy and data security are just two examples of what audit companies need to asses when automating audits and other services, Ms Elias said.
“One of the key ingredients to success is to make sure that they consult properly, in terms of how that will actually be implemented so that there isn’t a breach of the regulatory requirements.”