AMELIA ISLAND, Fla. (Oct. 22, 2018) – The American Institute of CPAs and a significant number of the nation’s largest accounting firms are moving forward with a multiyear initiative to create a new, innovative process for auditing using technology.
The goal of the collaborative effort – with contributions of time, talent and funding by leading CPA firms, the AICPA, its technology arm, CPA.com, and the AICPA’s technology partner, CaseWare International – is to develop a transformational auditing methodology supported by a state-of-the-art technology platform. Some $50 million has been committed to develop the new Dynamic Audit Solution methodology. In addition, CaseWare has invested tens of millions of dollars to build out their new cloud platform and has plans to continue this level of investment to support further advancements. The output of this Dynamic Audit Solution initiative would be available to the more than 14,000 firms that have auditing practices in the United States.
“Technology is poised to disrupt auditing as we know it,” said Barry C. Melancon, CPA, CGMA, president and CEO of the AICPA, 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.”
The AICPA began discussions with firm leaders about pursuing a Dynamic Audit Solution two years ago. The plan is to develop a dynamic, flexible and scalable platform that uses the power of automation, data analytics and updated methodologies to transform auditing. Some 40 percent of the AICPA’s Major Firms Group have committed funds to the initiative.
“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,” Melancon said. “It’s a great testament to the foresight and vision within the profession.”