Technological advances are progressing at an exponential pace in Africa and transforming traditional audit practices, according to the business leaders during a pan-Africa online event organised by the Institute of Chartered Accountants in England and Wales (ICEAW)
However, while digital transformation heralds a new era of innovation, especially in improving the quality of risk assessment, a critical element of all financial statement audits, significant challenges remain.
The online event was held on 30 March 2021 and provided insight from a panel of business leaders who shared knowledge and views on the future of the accountancy profession in a world where digital technologies are transforming business models, industry sectors and the workplace.
Discussions focused on how disruptive technologies are evolving in the accounting profession, the ethical implications, and the strategies required for managing the risks associated with the emerging applications of technology.
According to the panellists, the automation of audit processes, such as data analysis, will lead to greater consistency and give more opportunities to identify business risks. This will allow better planning of audit activities, especially during the current global crisis.
While traditional accounting has ancient roots, the tools and techniques used by the profession have always evolved. According to the speakers at the online event, accountants must be able to adapt and upskill to manage these technological changes, such as the need for increased knowledge of data analytics and cybersecurity, to remain competitive.
Ethics and professional judgement must also play a critical role in the digital age to ensure accountants continue to build public trust in business and uphold the reputation of the profession. Panellists agreed there is an opportunity for codes of ethics to be broadened to recognise the role of the accountancy profession in championing ethical principles when developing and applying technology.
The speakers also highlighted how the rapid growth in technology has automated many compliance elements of accountancy but increased complexity and risk. Such elements involve ensuring that a company's financial matters are being handled in accordance with federal laws and regulations.
David Matthews, president of ICAEW, said, “Technology is transforming the accountancy profession. Automation technologies, in particular, will change the role of chartered accountants. As technology’s influence in the working world spreads, accountants will have to diversify their skills, and an increased focus on advisory skills will mean that accountants will often find themselves acting as the broker between technical experts and clients.”
Michael Armstrong, FCA and ICAEW regional director for the Middle East, Africa and South Asia (MEASA), added, “In the coming decades, intelligent systems will take over more and more decision-making tasks from humans. While accountants have been using technology for many years to improve productivity and deliver more value to businesses, this is an opportunity to reimagine and radically improve the quality of business and investment decisions.
“To realise this potential, our profession needs to imagine how new technologies can transform our approach to the fundamental business problems we aim to solve. accountants that stay on top of technology trends, and can adapt to integrate changes, will be best positioned to leverage them for future growth.”
