Extracting more value from company audits

THE finance function has transformed in a big way. From solely focusing on reporting, it now also supports corporate strategy, risk management and capital allocation. It is thus not surprising that leading CFOs, driven by increasing board and stakeholder demands for compliance, transparency and performance, are expecting an enhanced dialogue with their auditors and more relevant insights from their audits.

In the meantime, with technological advancement, audits have also begun to transform with the use of data and analytics. For example, at EY, we have had the opportunity to innovate our audits. Over the years, we have made significant strides toward integrating analytics and data capture into the fabric of our audit approach. This will become the "new normal" for our auditors. By combining audit-relevant client data with intelligent analytics, we believe we can bring a more valuable audit experience to our clients.

No longer just about the inspection of numbers and evidence relating to random samples, technology now allows auditors to go through larger volumes of audit-relevant data more efficiently. Auditors can now enhance each of the key audit phases - from scoping to assessing risks, and testing of controls and details. They are then better positioned to ask more pointed questions to gather evidence and exercise greater professional scepticism - ultimately resulting in a more effective audit.