Technology-Enabled Changes in the Audit Compliance Landscape in India ( November 21, 2023 )
We discuss how emerging technologies hold the potential to transform the field of auditing by leveraging software-as-a-service platforms as well as incorporating artificial intelligence, automation, drones, and more. Moreover, India’s corporate affairs authority mandates the adoption of specific software-enabled tracking, such as audit trails.
As we look ahead to the next five to 10 years, the audit space is undergoing significant changes, driven by three key factors. First, the evolving business landscape and changing client expectations are reshaping how companies operate. The increasing complexity of organizational structures and the rise of intangible assets, such as digital transactions, require auditors to adapt their methodologies to match these new realities.
- Secondly, auditors themselves are redefining their roles to deliver more value and meaningful insights beyond traditional transactional reviews. They aim to provide comprehensive and relevant reports that go beyond mere financial data.
- However, one of the most significant drivers of change lies in the third aspect—the evolving regulatory landscape. The Institute of Chartered Accountants in India (ICAI) and the National Financial Reporting Authority (NFRA) are actively focused on enhancing the quality of financial reporting and ensuring auditors deliver high-quality audit reports.
To achieve robust audit processes, regulators have been updating existing guidelines and introducing new standards. Compliance with auditing standards is crucial for building trust among users of financial statements and fostering a robust economy. This includes the introduction of the concept of the audit trail, which is now mandatory for certain types of organizations in India.