# How auditors can prepare for reform now Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-25 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Auditing Industry Trends: Embracing Automation for Enhanced Meta Description: Find out how auditors can avoid costly mistakes and improve processes by moving away from manual systems like Excel and adopting automated technology for URL: https://financedigest.com/how-auditors-can-prepare-for-reform-nowhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1129810557-1736814980219-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/jack-skov-450x790-1736814980212-compressed.jpg) _By_ **_Jack Skov,_** _Chief Financial Officer,_ [_Konsolidator_](https://konsolidator.com/) The auditing industry has been under a lot of scrutiny of late. So much so that high profile scandals saw the [UK’s audit watchdog hand out a record £46.5m in fines last year](https://www.cityam.com/high-profile-scandals-saw-uks-audit-watchdog-hand-out-record-46-5m-in-fines-last-year/). The UK industry has spent a long time waiting for the UK government to introduce an audit reform bill to tackle existing issues. This bill would also ensure that the auditing profession complies with standards and that it [protects investors](https://www.financedigest.com/brexit-why-investors-must-now-think-global-to-maximise-and-protect-wealth.html "BREXIT: WHY INVESTORS MUST NOW ‘THINK GLOBAL’ TO MAXIMISE AND PROTECT WEALTH") and employees from malserverance. However, after much speculation that the [reform bill would be planned](https://www.financedigest.com/eus-planned-reforms-aim-to-better-protect-power-bills-from-market-swings.html "EU’s planned reforms aim to better protect power bills from market swings") for this year – it has been put on hold for now. However, regulation _is_ coming – this just means auditors have more time to prepare and fewer excuses if [mistakes are made](https://www.financedigest.com/tripling-the-size-of-my-business-in-the-pandemic-the-mistakes-made-and-lessons-learned.html "Tripling the Size of my Business in the Pandemic — The Mistakes Made and Lessons Learned") when it is enacted. As such, auditors still [need to ensure that processes are running efficiently and that standards](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’") are improved. While we may have to wait for a regulatory bill to be passed in the UK, auditors can start by self-regulating through adopting the use of [automated technology](https://www.financedigest.com/being-nimble-and-responsive-in-banking-and-business-has-arrived-thanks-to-accounting-automation-technologies.html "Being Nimble and Responsive in Banking and Business Has Arrived, Thanks to Accounting Automation Technologies"). **[Moving away](https://www.financedigest.com/exclusive-eu-to-move-away-from-emergency-phase-of-covid-pandemic-document.html "Exclusive-EU to move away from emergency phase of COVID pandemic – document") from manual processes** Financial and auditing professionals are under tremendous pressure and required to ensure that [data](https://www.financedigest.com/how-data-governance-as-a-service-can-transform-the-financial-sector.html "How Data Governance-as-a-Service can transform the financial sector") and complex tasks like financial consolidation are accurate and precise for their clients. One [small error can have a significant impact on a business’](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners") performance and completely derail a budget. This was the case for [JP Morgan in 2013](https://www.newstatesman.com/business/economics/2013/02/excel-most-dangerous-piece-software-world), where one small mistake in calculation cost the business $9bn. JP Morgan’s [mistake was that it relied on archaic systems like Excel](https://www.financedigest.com/dont-make-a-60-million-excel-mistake.html "Don’t make a million excel mistake") to make its calculations. While Excel is a popular [software for accounting and auditing firms – it is widely used and available – it is no longer enough to rely solely on this programme for complex data handling and financial](https://www.financedigest.com/how-much-does-cloud-based-financial-software-cost.html "How Much Does Cloud-based Financial Software Cost?") consolidation. This is because it is prone to human error – most of the time, [Excel is used by a handful of employees who are responsible for a particular spreadsheet](https://www.financedigest.com/goodbye-excel-spreadsheets-hello-performance-management-tools.html "Goodbye excel spreadsheets, hello performance management tools") and understand how it works. There is no [means for effective](https://www.financedigest.com/does-the-monzo-effect-mean-banks-will-need-to-rethink-brand-building.html "Does the ‘Monzo effect’ mean banks will need to rethink brand building?") collaboration or to avoid a manual miscalculation. For auditors and accounting professionals, there is no margin for error. In order to [improve the way](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") the auditing industry is working, it is imperative for auditors to lead the charge and move away from such manual processes and adopt automation to avoid errors. This is more [important since the recent accounting scandals – a simple mistake can not only cost a client’s business](https://www.financedigest.com/the-importance-of-property-care-looking-after-your-business.html "The Importance of Property Care: Looking After Your Business") billions, but also your own credibility as professionals and your reputation in the industry. By [moving away from programmes such as Excel and adopting automated technology](https://www.financedigest.com/the-cleanroom-technology-market-to-be-on-the-mobility-move.html "The Cleanroom Technology Market To Be On The Mobility Move"), auditors can swerve needless risk and improve processes. It can have a huge [impact on improving and enhancing the reporting](https://www.financedigest.com/uk-report-warns-of-impact-of-islamist-groups-in-prisons.html "UK report warns of impact of Islamist groups in prisons") and auditing process, and provide a full audit trail, guaranteeing reliability at every hurdle, thereby ensuring confidence in employees and clients, in addition to staying compliant. For businesses looking to scale up for investment, they need robust [finances – automation](https://www.financedigest.com/enterprise-automation-is-the-future-of-finance.html "Enterprise automation is the future of finance") can carry the heavy load. What’s more, [moving to Cloud-based software creates an additional layer of security for data storage and increases efficiencies](https://www.financedigest.com/tips-for-moving-office-how-to-use-packing-boxes-efficiently.html "Tips for Moving Office: How to Use Packing Boxes Efficiently") in computing costs for the organisation. **Planning ahead for change** While there is still uncertainty over when audit reforms come into effect, [finance and auditing professions must](https://www.financedigest.com/2019-year-must-re-build-public-trust-finance.html "2019 is the year we must re-build public trust in finance") plan ahead. The [industry needs](https://www.financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industry.html "A mindset change is needed in the financial services industry") to focus on how to minimise risk of inaccuracy and, thereby, potential scandal. By harnessing sophisticated, [automated technologies](https://www.financedigest.com/covid-19-makes-the-case-for-technology-and-automation-for-business-development-in-professional-services.html "Covid-19 Makes the Case for Technology and Automation for Business Development in Professional Services"), firms can be comfortable in the knowledge that their calculations are risk-averse. These systems ensure [data is accurate and secure](https://www.financedigest.com/how-financial-services-can-secure-data-and-build-trust-in-todays-modern-environment.html "How financial services can secure data and build trust in today’s modern environment") and leave behind a full audit trail that means there is a source for every calculation. By moving towards automated, cloud-based software, [key players in the market can change the future of audit and teams can access all key data](https://www.financedigest.com/sterling-edges-lower-ahead-of-key-data.html "Sterling edges lower ahead of key data") points with ease. When a business requires nothing less than efficiency, technology will step in to [create lean and efficient processes](https://www.financedigest.com/growth-of-mineral-processing-and-mining-industrie-is-creating-demand-for-rotary-trommel-market.html "Growth Of Mineral Processing And Mining Industrie Is Creating Demand For Rotary Trommel Market"). Automation can help auditors prepare for reform now.  [Firms need to be looking to the future and incorporating technology into their business](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business"). Not only will it maximise efficiency and accuracy, but it  will prove an effective [solution to re-instilling that much-needed confidence within our industry](https://www.financedigest.com/how-fortyhill-financial-solutions-recognised-mailock-as-an-industry-standard.html "How Fortyhill Financial Solutions Recognised Mailock as an Industry Standard"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---