Auditors are behind the curve in adopting technology to make audits more efficient and more effective, according to a recent AuditNet survey of 1,500 auditors in various settings.

The internet portal for the audit profession said one-third of auditors indicated few auditors in their shops are proficient at using audit software technology, and two-third reported that they get their training in using audit technology on the job. The survey suggests auditors use software tools on an ad hoc basis with no meaningful strategy or plan to integrated technology in the audit process. Where auditors said their shops make little use of technology, they cited software and maintenance costs as primary reasons. They also indicated there's no budget for technology and audit management doesn't mandate its use.

“Based on various reports I've seen over the years, there are varying opinions about how much auditors use technology,” says Jim Kaplan, founder and CEO of AuditNet. “So I wanted to do a survey of my own audience.” He says AuditNet has 130,000 registered users. “We found that the state of technology for auditors is surprisingly low considering the technology has been available for so many years.”

About 20 percent of auditors said their audit department is assessing needs but can't decide on whether audit technology will produce the desired benefit. Responses suggested auditors would expect a paradigm shift only if there were a change in the cost of technology and training or the commitment by senior management and the board of directors.

About 4 percent of auditors said their audit department has integrated technology into their audit process, and only 3 percent said their audit department has integrated data analytics into the entire audit process. Nearly 60 percent said their audit department uses only basic technology tools in areas such as scheduling audits and assigning resources, managing audits, tracking and following up on issues, monitoring controls, preparing electronic work papers, detecting fraud, and assessing risk.

“This really is a wake-up call for the audit profession,” says Kaplan. The report contains some suggested action steps to help audit departments increase their use of technology, such as taking inventory of tools in use, determining gaps, and developing staff to improve their use of technology, he says. According to Kaplan, investment in training is as important as investing in the technology. “So often there are problems with hiring or developing people with the technology skills,” he says. “They become in high demand so for career advancement to go to another organization or get promoted. That's not a good succession plan.”

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