Page 42 - PakistanAccountantOct-Dec2017

Signature Qualification CA that Empowers to Lead PAKISTAN the implementation of the United Nation’s 17 sustainable development goals? It’s difficult to predict the precise impact of the disruptive technologies we are seeing today. But impact they will. Although CFOs and the accounting profession have adapted to technological change in the past, we should not be complacent. Adaptation did not happen by accident. It was the result of thinking ahead, being open to new ideas and collaborating with those from different professions. CFOs who continue to do so can look forward to exciting, but maybe very different, roles in the future. Technology Brings Opportunities to Attract Young Talent detailed analysis of the strength and weaknesses of such systems, procedures, and communications security is essential for our work echnology has a very wide ranging impact on our everyday as an auditor when it comes to the issue of data integrity. activities as well as our work environment. For this reason, an increasing number of professional accountancy organisations Currently, information systems have enabled us to access a huge T(PAOs), as well as IFAC and the Small and Medium Practices amount of data like never before. Using data analytics helps us (SMP) Committee, are determined to help professional accountants detect abnormalities (both in time and volume) that may then adapt to the challenges technological change brings to continue allow us to drill down on “exceptional” transactions requiring serving their clients and the public interest. more detailed analysis. This includes, for example, exceptional Technology affects the auditor’s work environment, both on transactions such as repeated payments to the same client or for the same product, adjustments or exceptional accrual at certain the methodology applied in performing an audit as well as our relationships with clients and employees. Today, the firm’s specific dates, etc. All this allows us to focus our audit efforts on visibility in the marketplace, our own internal management the potential risks of irregular transactions not being detected processes, internal and external communication, and many other during the audit process. aspects of our professional activities depend and even thrive on technology. When our work is based on the analysis of significant risks (and exceptional reporting) and on the reliance in the internal control Specifically, information technologies are increasingly core to systems of our client, does annual audit as we conceive it today recording financial transactions of our clients. On one hand, continue to make sense? Certainly, our role as auditors is still confidence in the financial statements depends on the ability of relevant, as we are the independent experts who can verify the the information technology systems to ensure the completeness appropriate presentation involving complex financial transactions and accuracy of the data being captured. On another hand, (based on some applied criteria or reporting framework) and internal control in any medium-sized or large organisation conclude that it is being presented in a true and fair manner. But involves reliance on their information as well as communication probably, society and the client will appreciate a more continuous systems operating under a proper technological framework. After information flow than just our audit opinion delivered once a year. all, the strength of established controls is essential for auditors to be able to rely on the underlying economic and financial data Certainly, we must analyse and continue to emphasise, from the obtained through an information technology system. perspective of our code of ethics and independence, the main risks of the company we are auditing, how it is responding to For example, thanks to the development of cloud applications, them, and our opinion with regard to the appropriateness of these which allow access from any location, updating accounting data responses. However, it makes far less sense for our opinion to be can now be performed instantly and remotely. Once again, a expressed in a single annual report that merely reflects historical 40 The Pakistan Accountant October - December 2017