Auditing and Technology in UAE

Sumesh Krishna, Partner

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HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

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    COVID-19 has brought in tremendous changes to every sector across the world. Many businesses had to shut down, while the remaining shifted to digital or online business. Technology has been part of auditing for a few years now; but with the spread of the novel coronavirus, it has become an inevitable part of the auditing processes. Every business has been forced to change their modus operandi and had to learn the latest techniques.

    The past few months have witnessed massive technological advancements and changes in every sector, including the government offices, in every country in the world. All began to sell their services online. As for auditing, technology has been in use for a few years now with computer-aided audit tools.

    The Audit Quality Review (AQR) team at the Financial Reporting Council (FRC) publishes inspection reports every year. This year a report was published in March on the thematic review of “The use of technology in the audit of financial statements Samples of tech implementations at the top six audit firms were considered for the review.

    According to the review, the FRC concludes that all the firms’ common factor was data analytics for audit testing. Data analytics is used for risk assessment and substantive testing. Providing necessary training and tools for employees at all levels can bring in more meaningful results. But there are many difficulties that firms of all sizes face regarding the same. The data analytics have added advantages of AI assistance, natural language processing and machine learning.

    More than the advantages, the FRC is trying to warn businesses about the risks in technology. AI and other algorithms are made through machine language, and it may be difficult for a commoner to understand. These machine language algorithms can result in prejudices and biases from the training data which can negatively affect the auditing process.

    These issues can be resolved with design principles, ensuring that AI is identified and performed by following good practice. Communicating with all the employees is the next step to be taken to avoid such problems. The biases can be reduced by clearing the training data, by removing the sensitive fields, and through tests. The machine learning-based systems should also be treated like any other system in the entity, only then can we keep the technology under control without causing any issues for the company.

    The proper functioning of the design principles, models, and controls will boost any entity’s confidence and the service provider should be able to assure the business owners.

    Small audit firms use technology with ease, and this is due to the support of a third party who works with the entity by following their methodologies and approaches; this may not be possible for every auditing firm. The automated algorithms will give you a 100% result on testing where a small data is considered but it may not be the case for the entire population. The FRC’s report highlights the growth of natural language processing and data analytics which will be beneficial for the auditing sector.

    The computers will now read and interpret the written language; this is seen in some audit firms now where the computers take on by reviewing the contracts and meeting minutes. Another technology that is gaining popularity in the industry is blockchain. The blockchain-based accounting system allows making changes and self confirms many contents.

    These new technological advancements bring immense help to the auditors and make their jobs easy, but it requires special attention and regular checks to make sure that the technology is not ruining the system completely. Dealing with machines is easy unless you give them the power to destroy you.

    Go to our service page: Audit and Assurance

     

     
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    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
    Mohammed L
    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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