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Start for freeThe Evolution of Auditing: A Conversation with Jerry Ravi
Jerry Ravi, a partner in charge of EisnerAmper Digital, brings over 25 years of experience across various industries, blending his accounting background with a passion for technology. His mission? To provide peace of mind to clients by navigating the complexities of risks and opportunities. With almost two decades at EisnerAmper, Jerry shares invaluable insights into the auditing field, emphasizing the importance of embracing technology to enhance efficiency and effectiveness.
Understanding Audit: The Basics
Auditing might seem like a dry subject, but it's far from it. Jerry breaks down the concept into understandable terms, likening an audit to ensuring the safety and upkeep of a home. Companies, like homeowners, have objectives such as growth and security. An audit acts as a check-up, ensuring that everything is in order to meet these objectives. This approach not only helps in identifying risks but also in turning them into opportunities. Jerry's analogy extends to explaining governance to children, emphasizing the importance of safeguarding access and information.
The Importance of Auditing and Its Impact
The conversation delves into the significance of audits in preventing financial disasters and ensuring company longevity. Jerry highlights historical examples like Enron and FTX, illustrating the disastrous consequences of inadequate audits. These stories underline the human impact, including job losses and financial ruin, stressing the need for good governance and a robust audit system.
Technological Advances in Auditing
Jerry is excited about the future of auditing, particularly the integration of technology. He discusses current tools that automate and streamline the audit process, such as data analysis platforms for SOX compliance. Looking ahead, Jerry envisions a future where AI and blockchain will play significant roles in real-time auditing, enhancing transparency and efficiency. The conversation explores the potential of AI avatars conducting audits, making the process more interactive and efficient.
The Balance Between Innovation and Regulation
A recurring theme in the discussion is finding the right balance between innovation and regulation. While embracing new technologies, it's crucial to ensure they don't compromise the audit's integrity or overwhelm businesses with compliance costs. Jerry advocates for a balanced approach that fosters innovation while maintaining necessary safeguards.
The Future of the Audit Profession
As technology continues to evolve, the audit profession must adapt. Auditors of the future will likely need a strong background in technology alongside their accounting expertise. Jerry encourages current and aspiring auditors to invest in their technological skills, ensuring they remain relevant and can contribute to the profession's evolution.
Conclusion
Jerry Ravi's insights offer a fascinating glimpse into the future of auditing. By integrating technology and maintaining a balanced approach to regulation, the audit profession can enhance its value to businesses and society. As the landscape continues to evolve, auditors must adapt, ensuring they can meet the challenges and opportunities that lie ahead.
