A Case for Audit Automation: Evidence from Auditing Literature and an Internship During the Pandemic

Abstract

External auditing is the branch of accounting where an independent accounting firm examines an organization’s financial records and provides a reasonable level of assurance that the financial statements are in accordance with generally accepted accounting principles. This is crucial to organizations in order to make a company’s financial records and, therefore, its economic condition clear and understandable both to its managers and to potential investors. The aim of this research is to examine the auditing profession and its technological advancements, particularly in light of the COVID-19 pandemic, and determine whether the remote nature of audit work since 2020 has been beneficial or detrimental. The research process consisted of review of prior research sources combined with knowledge obtained from firsthand experience in an accounting firm during the pandemic. The conclusion of this research suggests that the new methods were overall advantageous to auditors. Although some audit procedures may still require traditional methods in order to be most dependable, many auditors should consider permanent adoption of the new methods.