AICPA teams up with firms to transform audit
The American Institute of CPAs and a number of major firms have created a multi-year technology initiative to create a new and innovative audit process around a planned product dubbed the Dynamic Audit Solution.
The goal of the plan is to “develop a transformational auditing methodology supported by a state-of-the-art technology platform,” according to the AICPA. A reported $50 million has been committed to develop the new Dynamic Audit Solution methodology from partner firms and other investors — some 40 percent of the AICPA’s Major Firms Group have committed funds to the initiative.
In addition, CaseWare, a technology partner of AICPA’s tech arm CPA.com, has invested tens of millions of dollars to build out its new cloud platform and has plans to continue this level of investment to support further advancements. CaseWare also developed OnPoint PCR in partnership with CPA.com, and released the solution earlier this year; the product is a smart, cloud-based solution for firms to conduct preparation, compilation, and review engagements.
The output of the Dynamic Audit Solution initiative is planned to be available to the more than 14,000 firms that have auditing practices in the United States.
According to the AICPA, the institute began discussions with firm leaders about pursuing a Dynamic Audit Solution two years ago. The plan is to develop a flexible and scalable platform that uses the power of automation, data analytics and updated methodologies to transform auditing.
“Technology is poised to disrupt auditing as we know it,” stated AICPA president and CEO Barry Melancon, who discussed the Dynamic Audit Solution collaboration at the fall meeting of the AICPA’s governing Council. “We can take a more cautious approach to change, automate here or there using existing methodology, or we can boldly reimagine what auditing in the future will look like. To me, and to the firms that have committed to this initiative, the choice is clear. We called on firms with the scope and resources to handle a substantial investment of time, money and brainpower, and the response has been phenomenal. It’s a great testament to the foresight and vision within the profession.”