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INTRODUCTION Students enrolled in the course‘Auditing’thisyear willbe entering the workforce at a very exciting time: the time of the Fourth Industrial Revolution (also referred to as Industry...

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INTRODUCTION
Students enrolled in the course‘Auditing’thisyear willbe entering the workforce at a very exciting time: the time of the Fourth Industrial Revolution (also referred to as Industry 4.0).Inspeaking of theFourth Industrial Revolution, Klaus Schwab, founderof the World Economic Forum, stated,

“We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before. We do not yet know just how it will unfold, but one thing is clear: the response to it must be integrated and comprehensive, involving all stakeholders of the global polity, from the public and private sectors to academia and civil society.

The First Industrial Revolution used water and steam power to mechanize production.The secondused electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.”(Schwab,2018).

Many ofthe developments referred to by Schwabhave, or will, impact auditingand the broader field of accountancy.In this assignment, youwill explore the impact of technology on auditing by addressing the followingessayquestion.

ESSAYQUESTION (2,500 WORDS):

Select three technologies from thosediscussed in the paper titled, ‘Audit and Technology’(ACCA, 2019)that have,or areexpected to,impact financialstatement auditing.Briefly outline each of the technologies youselect andexplain how its impacton auditing has been felt,and/or is likely to be felt in the near future.

ABOUT THEASSIGNMENT

Theessayconcerns asignificantcontemporaryissue in auditing. Itrequiresyoutogain an understanding of the issue and to be able to explain its importance. Incompletingthe assignment,youwill need to master a set of readings that are provided under the heading,Required Assignment Readings. One of these readings,‘Audit and Technology’(ACCA, 2019) is the foundation reading.You shouldstudy this reading carefully and use it as a reference point forfurther reading. The RequiredAssignment Readings provide students with a soundbasis foraddressing the essay question.As can be seen in thetable below titled‘Assessment Criteria’,15 marksare allocated for usingthe Required Assignment Readings.

You are also required to undertakefurther researchon the essay question.An additional15 marks areallocatedfor the use of other appropriate material. You may wishto usematerials that you have found yourself, or, you may wish to rely on the readings provided under the heading“Additional Assignment Readings”. Perhaps you will choose a combination of both. There is no set number of additional readings/ materials that are to be used. The number provided by me may exceedthe number any one student is likely to use.In providing the Additional Assignment Readings, I am simply presenting to studentswith good quality discussionsof the relevant issues.(Please notethat I have provided the Additional Assignment Readings because some students in the course areaffected bythe Government’s travel ban, and may not have access to sufficient resources to undertake independent study.)Required and Additional Assignment Readings are listed below, together with their URLs.

Key Points to Note

•The due date for this assignment is 9.00 am on MondaySeptember14th.•The assignment is to be submitted through “turnitin” on the course MyUni page.•It is an individual assignment.•Either the Harvard referencing system or the footnote system can be used.•The assignmentmustsubmitted according to the following criteria:•Title of the essay, student name and ID number are to be placed at the top of page 1•File type: .doc or .docx.•Font: Either 11 pt.Arialor 12pt.Times Roman.•Spacing:1.5•Margins:Left-handmargin2.2cm andright-hand margin3.4 cm (this is to allowfeedback fromthemarker to be included on the face of the essay).•While headings can be used to identify sections of the essay, an integrated piece of writing, in which you present an overall argument,is required.•The word limit is 2,500 words.•No more than 5% of the words submitted can be direct quotations. Please seealsothe University’s Academic Honesty Policy, which can be accessed online through the Course Outline.•The marks allocated according to the marking criteria stated below will be scaled to yield a final mark out of30 for this assessable item.

ASSESSMENT CRITERIA

Item

Marks

Outlining threetechnologiesand providinganintroduction and a conclusion[1]

30

Explanation of theimpact on auditing of each of the three technologies[2]

30

Use of Required Assignment Readings[3]

15

Use of other appropriate material[3]

15

Total

90

Penalty for poor presentation or exceeding the word limit[4]

Up to 5 marks

Penalty for notconstructing a soundargument.[5]

Up to 5 marks

Penalty for incorrect and/ or incomplete citation of references.[6]

Up to 5 marks

Penalty for exceeding the word limit for direct quotations and close paraphrasing[7]

Up to 50% of the marksotherwise awarded

TOTAL MARKS FOR THE ASSIGNMENT=90/3 =30​

Notes on Assessment Criteria

[1]Marks are allocated as follows:

I.Theintroductionshould providethe context for the analysis you will provide in addressing theessay topic,andsuccinctly inform the reader (the marker)of what you will be discussing in the body of the essay.(4Marks)II.Theoutline of the three technologiesshould informthe readerof the salient characteristics of each technology. You need to demonstratean understanding ofeach of the three technologies. (3 x 7 =21 Marks)III.Theconclusionshouldsuccinctly draw togetherthe main ideas that you have discussed in the body of the essay.(5Marks)

[2]To be awarded marks under this criterion you are required to explainthe impact of each technology onauditing.(3 x 10 = 30 Marks)

[3]To beawarded marks under the criteria“useof materialprovided” and “use of other appropriate material”,youare required toselect ideasfrom various readings that are relevant to your analysis of the impact on auditing of the Fourth Industrial Revolution,and tocompare and /or contrast the ideasof different writers in a cogent argument. Such use of materials must me evidenced though appropriate referencing.(15 marks for eachcriterion)

[4]Assignments must be free from typing errors and be properly spaced. Each page must be numbered andorganisedwith care.Students may complete theessay using+/- 10% of the word limit.

[5]All answers are expected to be logical and well structured. Merely listing ideas is not satisfactory.

[6]The essay must be written in your own words.The real valueto youin writing an essay is that providesan opportunitytocritically analyse a body of literature andconstruct a valid argument.

REFERENCES

Association of Chartered Accountants (2019a).Audit and Technology.

https://www.accaglobal.com/content/dam/ACCA_Global/professional-insights/audit-and-tech/pi-audit-and-technology.pdf

Schwab, K. (2018) “The Fourth Industrial Revolution: What it Means, How to Respond."

https://www.creativeinnovationglobal.com.au/2018/04/the-fourth-industrial-revolution-what-it-means-how-to-respond/March. 2020.>

REQUIRED ASSIGNMENT READINGS

Required Assignment Reading 1(Foundation Reading):Association of Chartered Accountants (2019a).Audit and Technology.

https://www.accaglobal.com/content/dam/ACCA_Global/professional-insights/audit-and-tech/pi-audit-and-technology.pdf

Required Assignment Reading2: Raphael, J XXXXXXXXXXRethinking the Audit.Journal of Accountancy,April 1, 2017.

https://www.journalofaccountancy.com/issues/2017/apr/rethinking-the-audit.html

Required Assignment Reading 3: Sweet, P XXXXXXXXXXArtificial intelligence cannot replace professional judgment for auditors.Accountancy Daily4 Jul 2019.

https://www.accountancydaily.co/artificial-intelligence-cannot-replace-professional-judgment-auditors

RequiredAssignment Reading 4:Institute of Chartered Accountants in England and Wales XXXXXXXXXXData Analytics for External Auditors.

https://www.icaew.com/-/media/corporate/files/technical/iaa/tecpln14726-iaae-data-analytics---web-version.ashx

Required Assignment Reading 5: Association of Chartered Accountants (2019b).

Machine Learning More Science than Fiction

https://www.accaglobal.com/content/dam/ACCA_Global/professional-insights/machine-learning/pi-machine-learning-report.pdf

Required Assignment Reading6:Guszcza, J., Rahwan, I., Bible, W., Cebrian, M. and Katyal, V XXXXXXXXXXWhy we need to audit algorithms.Harvard Business Review,November 28, 2018.

https://hbr.org/2018/11/why-we-need-to-audit-algorithms

RequiredAssignment Reading 7:Chartered Accountants Australia and NewZealand (2017).

The Future of Blockchain

https://www.charteredaccountantsanz.com/news-and-analysis/insights/research-and-insights/the-future-of-blockchain

ADDITIONAL ASSIGNMENT READINGS

Additional Assignment Reading 1:Forbes Insights XXXXXXXXXXAudit 2020 A Focus on Change

https://images.forbes.com/forbesinsights/StudyPDFs/KPMG-AFocusOnChange-REPORT.pdf

Additional Assignment Reading 2:PWC XXXXXXXXXXConfidence in the Future Human and Machine Collaboration in the Audit.

https://www.pwc.co.uk/audit-assurance/assets/pdf/confidence-in-the-future-human-machine-collaboration.pdf

Additional Assignment Reading 3:Association of Chartered Accountants XXXXXXXXXXThe Race For Relevance: Technology Opportunities for the Finance Function.

https://www.accaglobal.com/content/dam/ACCA_Global/professional-insights/the-race-for-relevance/pi-race-for-relevance.pdf

Additional Assignment Reading 4:KPMG XXXXXXXXXXThe Impact of New Technology on Audit and Assurance.

https://assets.kpmg/content/dam/kpmg/ng/pdf/advisory/Impact-of-New-Tech-on-Audit-and-Assurance.pdf

Additional Assignment Reading 5: Sun, T. and Vasarhelyi M.A XXXXXXXXXXDeep Learning and the Future of Audit.The CPA Journal,June 2017.

https://www.cpajournal.com/2017/06/19/deep-learning-future-auditing/

Additional Assignment Reading 6:Association of Chartered Accountants XXXXXXXXXXTenets of Audit Quality

https://www.accaglobal.com/content/dam/ACCA_Global/professional-insights/Tenets-of-quality-audit/pi-tenets-quality-audit.pdf

Additional Assignment Reading7:Association of Chartered Accountants XXXXXXXXXXDivided We Fall, Distributed we Stand.

https://www.accaglobal.com/content/dam/ACCA_Global/Technical/Future/Divided%20we%20fall%2C%20distributed%20we%20stand%20-%20The%20professional%20accountant%E2%80%99s%20guide%20to%20distributed%20ledgers%20and%20blockchain.pdf

Required Assignment Reading 8:The impact of Digital and Artificial Intelligence on audit and finance professionals: harnessing the opportunities of disruptive technologies 30 January 2019 Report.

https://www.accaglobal.com/content/dam/ACCA_Global/Technical/Reports/30%20January%202019%20ACCA-EY%20event%20%20REPORT%20FINAL.pdf

RequiredAssignment Reading 9:Baraniuk, C XXXXXXXXXXBlockchain The revolution that hasn’t quite happened. BBC News, February 11, 2020.

https://www.bbc.com/news/business XXXXXXXXXX

6

Answered Same Day Aug 05, 2021

Solution

Soumi answered on Aug 29 2021
144 Votes
AUDITING ASSIGNMENT SEMESTER 2 2020
Table of Contents
Introduction    3
Information Management Auditing    3
Evolution of Auditing Tool    4
Technologies Affected Auditing Process    4
Contemporary Issues in Auditing    7
Analysis    8
Conclusion    9
References    10
Introduction
Auditing is a technique described as any process used by auditors to detect outliers resulting from controls developed by an entity or corporation and often used to find issues in existing controls and processes. Auditing is used to help businesses find mistakes and provide co
ective methods. Several companies have found new ways to save money and streamline business practice. Government agencies and businesses have become largely powerless without computerised information systems they would be able to ca
y out their activities and to store, preserve and monitor essential information as long as computer software and technology advance.
Information Management Auditing
Information management auditing is a
eak in the auditing cycle that allows businesses to have good governance facilities. There may not be a single standardised concept of information systems auditing; but the process of collecting and reviewing evidence to assess whether a computer system (information system) protects properties, preserves data integrity, succeeds or does so. The use of electronic resources and facilities has led to new ways of storing, recording and managing information. Therefore, the repetitive nature of many computer programs means that small e
ors will lead to significant losses (ACCA Global, 2020).
For an example, an e
or in the measurement of employee income tax payments in the manual method does not occur in one case, but in the other case. The use of electronic resources and facilities has led to new ways of storing, recording and managing information. Hence, the repetitive nature of many computer programs means that small e
ors. For an example, an e
or in the measurement of employees' income tax payments in a manual system may not occur in each case, but on the other hand; in comparison, when a failure or e
or occurs in a computerised system, it may continue to affect each case and the bank may face significant losses.
If it is just a simple mistake, such for rounding off to the next dollar instead of close to the dollar. This makes it very important for the auditor to check undetectable or indistinguishable procedures and to identify vulnerabilities or defects in the computer information system, because the loss of defects and i
egularities may be significant. One thing for sure is that a number of security issues are due to technology, not to users or staff (operators) who commonly get the blame.
Evolution of Auditing Tool
The basic goal of auditing is to show that the findings provided by the profit and loss report and the financial situation reported by the balance sheet are accurate and realistic. The core goals of the audit are known as the primary goals of the audit. They are as follows: the examination of the internal control system, testing the mathematical accuracy of the books of the accounts, testing the filing, costing and balancing. As indicated by Byrnes et al. (2018), an analysis of the historical development of auditing has shown that primary goal of auditing. The role of auditors is constantly evolving as they are strongly influenced by situational variables such as the real historical events (for example, the fall of large corporations), the conviction of the tribunals and technological advancements (example advancement of computing systems and CAATs).
In overview auditing, first ca
ied out in the form of an ancient search in China, Egypt and Greece. Modern auditing has been developed since the industrial revolution. At mid-1800 to early 1900, audit practice can be regarded as the "traditional compliance role of auditing." Over the past 30 years or so, the auditor has played an "enhancing role" by strengthening quality and integrity. Today's auditor not just to improves integrity and but al provide value added services. It has become clear that every company uses information technology products and services during its day-to-day operations.
As mentioned by Tarek et al. (2017), IT auditors ensure that the activities are ca
ied out in accordance with regulations, business plans, policies and procedures. It is therefore very important for businesses to improve their plans, policies and procedures. The integration of big data, predictive analytics and visualisation tools offers audit and business perspectives that affect the way the audit is prepared, ca
ied out and delivered. For example, instead of evaluating a subset of revenue transactions to determine the importance of revenue recognition, an auditor may now evaluate both revenue and counter-revenue transactions to identify inconsistencies.
Technologies Affected Auditing Process
Audit world is progressing at a pace that means that businesses need to start thinking seriously about their own technical skills to start standing up to an audit process. It is going to change the way companies communicate with us, the type of data we are asking for and the knowledge we require. All accountants understand that accounting is a business language. The language has undergone many changes over the years. Yet with all the advances in accounting technology, it has also played a role in making the work of the accountant a little easier. When our understanding of technology improved, so did the accounting officer's ability to interpret statistical values. Following is the lists of the technologies...
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