Auditing needs human touch, not just technology
Technology cannot replace the human element that is necessary in the audit process, according to a leading software company.
Jo Hurley, general manager of growth at Class said although technology is streamlining auditing in the SMSF sector, it should really only be an enabler, and not take control of the entire process.
“We want it to be an enabler, but we don’t want it take over and for auditors to rely on that technology too much because that comes with its own inherent risks as well,” she said.
Speaking on the ASF Auditing latest podcast, Ms Hurley said new technology is helping to educate and train new entrants into the SMSF auditing process as well as supporting new trustees to begin their journey in self-managed funds in a more efficient and effective manner.
“One of the big things we’re seeing with technology in the last few years is the entry of more millennials into SMSF and we’re seeing a lot of new entrants are coming through either online or with technology,” Ms Hurley said.
“The new platforms are also providing that direct connection in the early stages of running an SMSF which is exactly when a lot of advice is required.
“It means the new recruits coming in are hands-on a lot more quickly. They’re getting that connection with clients and are able to see the data and trends and to identify what’s happening, but also be able to add value to the process a lot more quickly.”
Mr Hurley said it is important for technology developers and the auditing industry to work together to ensure news software can work with the intricacies of the Superannuation Industry (Supervision) Act 1993 and fund operations.
“One of the biggest things we need to be cognisant of is that we want to ensure that any technology use within the audit space is reducing the risk of SMSF and the industry overall,” she said.
“There are plenty of examples where the actual conduct of the audit process gets data and evidence and information and takes it from a really safe environment into an unsafe environment and that’s we really don’t want – we want to keep data secure.”
Mr Hurley said with the increase in data breaches worldwide it is vital that trustees and others in the SMSF sector feel there information is secure.
“It’s really important the technology is adding to the security and that we’re actually closing some of these black holes that currently exist between administration and audit,” she said.
“But the human element is still really important and fundamental to an audit opinion and its one of those elements that will not be replaced in the audit process.
“Having said that, technology, no doubt has a big role to play and auditors really need to be aware of these risks and technology because you can’t ignore the existence of these things when doing the audit.”
