The National Financial Reporting Authority (NFRA) is expected to release the second edition of its Staff Series on Technology in Audit in the coming weeks. The publication will build on the principles-based framework introduced in NFRA’s first technology-focused series released in July.
The first publication examined the application of technology across key stages of an audit, including audit planning and risk assessment, substantive and controls testing, evaluation of audit evidence, and reporting.
The upcoming series is intended to further address the opportunities and challenges arising from the increasing use of technology and digital tools in audit processes. NFRA officials have highlighted that statutory auditors continue to bear responsibility for the financial statements they audit and cannot rely on the use of artificial intelligence as a substitute for professional responsibility and appropriate audit judgment.
Technology can enable auditors to examine larger volumes of financial data and potentially review transactions more comprehensively than traditional sampling-based approaches. At the same time, the use of digital tools requires appropriate procedures, controls and professional evaluation to ensure that audit conclusions remain reliable.
The Staff Series forms part of NFRA’s broader mandate to recommend measures for improving audit quality and increasing awareness of accounting and auditing standards, auditors’ responsibilities and other matters relevant to the quality of financial reporting and audit. CASansaar