KEEPING UP WITH RPA AND THE AUDIT FUNCTION By DR. SEAN STEIN SMITH, CPA
LEHMAN COLLEGE
Automation is discussed so often in the context of accounting and audit services that it’s become something of a cliché. But dismissing the trend as just another buzzword misses the bigger picture.
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The accounting profession is being redefined and changed on a daily basis by the continued integration of technology and automation tools, both on the client side and within firms. That said, it can be difficult for organizations to keep pace with the rapid development of automation, and this has only increased in the face of the coronavirus pandemic. Much has been written about how the trends toward remote working and a distributed workforce have been pulled forward because of social distancing and other safety measures. The real question, then, is how can firms outside of the top 25 keep pace, stay informed and continue to offer much-needed guidance and advice to clients? DEFINING THE TOOL Automation is an umbrella term and can encompass an array of options. A priority in every automation conversation is to make sure that both the client and firm staff on the engagement are on the same page as to what specific automation tool is being used. The major categories of automation include the following: y Bots, and for conversation this will take the form of software bots versus physical robots, are programs that can address some processes that already exist in an organization. Common points for early adoption include implementing bots to manage customer service responses, emails and meeting scheduling. y Robotic process automation (RPA) can be best thought of as a halfway
NOVEMBER/DECEMBER 2020 | NEW JERSEY CPA
point between current automation protocols embedded into existing software and more advanced automation packages and suites. Numerous organizations, in the rush to automate processes and accelerate innovation, may overlook cost-effective RPA solutions in the marketplace. y Artificial intelligence (AI) may be where every organization wants to go, and that is because — in theory — an AI tool can learn, apply and expand upon existing information and training to interpret new information to help business owners make more-informed business choices. Popularized by IBM Watson, the reality is that, for many organizations, an AI implementation is further off than some might think. DEVELOP THE USE CASE The use case or application for an automation tool needs to be assessed, and this is where small and midsize firms and associated advisors need to focus clearly. While a fully blown AI suite and implementation may be the end goal that upper management at both the client organization and the firm would like to reach, the reality is that many companies simply are not ready for such an implementation. Media presentations of what AI is capable of may have led some practitioners and business leaders to assume progress is more advanced or widespread than it actually is. This is both a challenge and an opportunity for auditors and other members of the
