As the New Year is booming with new subjects. Let us shed light on a new subject that intrigue the readers. Auditing is a traditional subject, and it requires timely changes. Data analytics is a new technology and its benefits are to multiple industries. ICAI is introducing data analytics to the students through subjects, webinars and workshops. The blog is written to examine webinars, workshops, and challenges in the auditing job. It is easy to teach the students. The challenge is with experienced professionals. They use the technique of sample-based analysis. They do not examine the data sets, and patterns and conclude from the evidence. So, it is essential to understand the importance of data analytics as it is gaining popularity in the international market. The blog provides insights about the ICAI’s initiative to data analytics, the audit companies using the data analytics technology and the growth in terms of money in a chartered accountants profile by data analytics.
Data analysis and digitalisation:
The benefits of data analytics are reducing the risk element in the auditing process, helping to analyse large volumes of data and enhancing the reporting quality. ICAI conducts workshops and webinars in Python, SQL, Microsoft Power BI, and RPA tools. Data analytics help auditors see the entire data. Generally, auditors use the samples to check the data. Usage of technology help in understanding the data pattern and accounting process. Beginner-level professionals know data analytics. Professionals with experience find it difficult to use data analytics. It takes time to educate the auditors about data analytics. The workshops and webinars help to reach new and old students.
ICAI subjects with data analytics:
Students read about data analytics in the subjects as well. The introduction of technology-related-subject starts at the intermediate level. The students use technology during the article ship and ICITSS training. In the final level of CA intermediate 2023, the subjects are advanced accounting, enterprise information system and strategic manage, auditing and assurance, financial management and economics for finance. Information systems and their components explain the application systems, database systems, operating systems, and networking and communication systems. ICAI understand the importance of inclusive growth, a resilient global ecosystem, sustainability and digitalisation.
How Audit companies are using data analytics?
EY is in the transformation mode. The company is focusing more on consultation and less on the auditing side. The digital leader of Ernst and Young, Marc Jeschonneck, Paul Goodhew, Global assurance innovation and emerging technology leader, declare that the firm had invested $ 1 billion in artificial intelligence for auditing with high standards. Business intelligence brings relevance to business decisions. Artificial intelligence collects data from contracts, documents, information, and invoices. These data are divided into financial and non-financial. The usage of artificial intelligence helps professionals to fetch the data that is important for financial decisions. Artificial intelligence, machine learning and data analytics are valuing the time of the auditor. The auditor can make use of the technology and save time.
The Indian government is making use of technology to bring accuracy and punctuality. The tax department uses data analytics to check the accuracy. KPMG automate the audit process. Sonal Bhutra and Rahul Kashikar, and Sandesh Mahagaokar say that digitalisation of the tax process is essential to economic growth. Digital mediums help for focusing on the high tax brackets. Business owners with high tax liability find it easy to pay taxes digitally. If there is a plan to automate the tax process, the company must make changes to the internal and external systems. The data volume and process decide the right technology. Artificial intelligence, business intelligence, machine learning and data analytics are the technologies that transform voluminous data into meaningful insights.
Growth of chartered accountants with data analytics skills:
From 2010 to 2019, the researchers analysed the web portal of job applicants in audit firms. The research from 310,000 employees revealed that AI employees are on the higher side. Artificial investments reduce the human workforce. AI investment increases the quality of audits. AI investment has a link with the audit fees. The research also revealed that the retail Industry use AI tools for gathering sales data. Companies invest in AI to understand the competition of new products or new markets. Hiring employees with over-hyped job skills increase the valuation of companies.
• Chartered accountants need to be proactive and reactive. Proactive decisions are possible with the usage of data analytics. The benefits of learning data analytics are as follows.
• By learning data analytics, the employees handle fraud, business risks and financial reporting.
• Predictive accounting help for managing the competition. Chartered accountants working in a medium or small firm face competition. Predictive analysis requires the knowledge of numbers and past data. The prediction helps business owners to understand customer behaviours and other financial decisions.
• Data analytics help small and medium-sized firms to increase their client base. By using technology, chartered accountants can do the consultation effectively.
• Integrating data and business objectives requires an understanding of the financial process and technical challenges. In large auditing firms, analytics is needed for completing the auditing, tax, risk management and consultation services.
• Data analytics is useful to chartered accountants with experience in the public or industry-specific domain. Data analytics is useful for understanding the voluminous data in the public sector and big industries.
Conclusion:
As per the speech of the ICAI president about open audit services, the auditing market is going to expand. There is a necessity to change the traditional mind-set. Chartered accountants work in a foreign company after gaining knowledge of the tax laws of different countries and advanced technology. Data analytics improve Indian and foreign companies and mark the skills of Indian chartered accountants as the best professionals.
