Industry Experts Advocate for Integrated Audit Tools to Enhance Efficiency and Quality  

Integrating audit methodology with audit technology enables accounting firms to gain a competitive edge. That was one of the key messages delivered by industry experts discussing this integration at a Caseware event where leading firms and industry partners gathered to explore advanced technologies, examine customer achievements and showcase how Caseware helps members of the accounting profession do their jobs more efficiently and effectively. 

“We saw firms trying to knit together a patchwork of individual technology tools, which was highly inefficient and not a great user experience for their teams,” said Amy Pawlicki, Vice President, Assurance and Advisory Innovation with the AICPA. “What you need is an integrated tool that brings together a comprehensive, integrated methodology with other best-in-class technologies. Larger firms are building their own solutions and we wanted to make sure that this is also available to all the other firms, so they’re not at a competitive disadvantage.” 

Pawlicki was speaking as part of a dynamic panel that included Azunna Anyanwu, CIO of the firm MGO CPA, and Danielle Supkis Cheek, VP and Head of Analytics and AI for Caseware.  

Cheek explained an integrated technology stack is important. “You want to make sure everything lives in the same place, so you don’t have to figure out how to move data from one place to another,” she said. “Having that ecosystem and bringing everything together will benefit everybody.”  

How technology enables firms to gain a competitive advantage 

The panel discussed how firms can leverage technology to give them an edge in an increasingly competitive market.  

Pawlicki discussed the measurable results firms can get from the Dynamic Audit Solution (DAS). DAS, developed by Caseware, CPA.com, the AICPA, and auditors from top-100 firms, leverages transformative methodology, end-to-end integration, and robust collaboration tools to deliver data-driven, risk-based audits.  This type of solution, Pawlicki said, allows for the identification of, and response to, risks in a comprehensive way.  

The competitive advantage stems from DAS’s integrated capabilities in bringing together methodologies and workflow capabilities into one tool, along with automation of workflows and tasks, allowing auditors to focus on higher-value work. The efficiency gains from DAS translate into more time spent focusing on what matters most and building trust with the client. 

Audit firms will need to perform higher quality audits and Cheek said the only way to achieve that is through the adoption of new technology. “If we used 30-year-old tech for today’s audit, the PCAOB is going to have a problem with that,” she said. Technology is not just a tool for efficiency but a necessity for meeting the increasingly stringent regulatory requirements in the audit industry. 

Before the pandemic, many firms still relied on manual, paper-based processes, Anyanwu noted. Today, that’s no longer the case. Clients expect their firm to be technology driven. And there’s more competition than ever because the shift to paperless processes means clients no longer need to use local firms. They can use a firm across the country just as easily as one in their local community. “I believe innovation and having a competitive advantage with clients is going to be the differentiator between the firms that are great and the firms that are good,” he said. 

The importance of change management  

The panel also examined a big concern for many firms: change management.  

Pawlicki said resistance to change is natural, so firms must plan to adopt and implement new software and technology. “The hard part is the change management perspective, in terms of people getting used to doing things differently. The firms we’re seeing have the most success really have detailed change management plans.” 

Anyanwu agreed. He noted that selling change can be difficult, especially for established employees. “The younger generations are expecting technology that works,” he said. “But the truth is we have people who have been in the profession for 30 years and wonder why we need to change things if it’s worked fine for decades with paper and pen. So, we have to make them understand that the old way of doing things isn’t going to be scalable in the future. College graduates don’t want to do grunt work for decades so they can make partner.” 

One mistake firms often make, Anyanwu said, is switching to new solutions too frequently. Therefore, one of the keys to success in finding the right partner is accurately evaluating technology partners, their solutions, and their long-term suitability as part of a structured process. 

Close collaboration with vendors is key 

The panel weighed in on the most important aspects of the technology partner-firm relationship. The panel’s host discussed a recent survey, which found that a collaborative, strategic approach was highly sought after by technology partners. The goal is to be a peer of the buyer, who understands their pain points and can work with them to find solutions, rather than a mere seller of products.  

Cheek underscored the necessity for technology partners to have a grasp of their customers’ risk profiles. She noted that while the pressure to release new technology quickly can be immense, it often overlooks the stringent oversight and complexity inherent in the audit profession. “Starting with a deep understanding of their problems is incredibly important,” she explained. 

Pawlicki agreed “They have to converse with firms and understand their issues at a detailed level. You can’t do that in a silo as a tech firm,” she said. “You have to work with the people on the ground performing the services, who are going to use the tools and you can’t discount that.” 

Technology partners can make the mistake of targeting a narrow slice of an organization while failing to gain a comprehensive understanding of how to get the right data in and the right data out, Anyanwu explained. “Inevitably, my colleague would say, ‘Hey, this vendor just sold me this. It’s going to do all these great things.’ And then, as the CTO, I start to ask, ‘What system does that integrate with? What data does it need? The data that it produces — where’s that going to go?’ And no one has given any thought to that.” Accounting firms, he said, need technology that integrates with their practice management solution, people or HR system, and customer relationship management (CRM) system, among others.  

In conclusion, the integration of audit methodology with advanced audit technology is not just a trend but a necessity for firms aiming to stay competitive. As highlighted by the experts, leveraging comprehensive, integrated tools can significantly enhance efficiency, improve audit quality and meet regulatory demands. Firms that embrace this technological shift and manage change effectively will not only meet client expectations but also position themselves as industry leaders. The collaboration between technology partners and firms is crucial in this journey, ensuring that solutions are tailored to the unique needs of the audit profession. 

Contact Caseware to explore integrated audit solutions 

Caseware is dedicated to developing integrated, state-of-the-art solutions for audit and accounting, including the OnPoint Engagement Suite built on the Caseware Platform. The secure, scalable Caseware Platform offers a consistent user interface across all audit products, combining planning, analytics, documentation and reporting tools into a single application.  

The OnPoint Engagement Suite is a comprehensive, insights-driven solution that offers firms a fully integrated and intelligently guided auditing experience. The Suite, which includes OnPoint DAS, OnPoint Audit, OnPoint EBP and OnPoint PCR, empowers auditors and accountants to deliver unparalleled insights and value to their clients. It features a robust library of standards- based methodologies and sector-specific content, tools and customizations, all within one integrated platform. 

Contact us today to learn more or to schedule a demo.