The audit profession’s capacity to deal with corruption and the looming threat of artificial intelligence are honest a few of its multiplying hurdles in South Africa. The moment has arrived when firms, regulators, and academia need to grasp a more people-oriented and strategic approach when walking the career path of an auditor.
The auditing landscape in South Africa is undergoing significant changes, with the emergence of recent technologies and the increasing demand for transparency and accountability. As a result, the future of audit in South Africa is being reshaped, and companies and auditors alike must adapt to these changes in order to remain competitive.
While digital tools, like AI, has a role in performing highly technical calculations and procedures in the blink on an eye, the valuable experience earned by a single excellent auditor shines brightest when working with others, including clients, colleagues and regulators or authorities.
Indeed, they should be the source of light, unveiling irregular transactions, while offering useful and practical information that could catch business into modern growth.
SA’s audit sector
The mass adoption of smart digital tools is accelerating across a wider breadth of functions at an exponential rate. Manual processes are being dropped, as business systems are automated, and AI is our present reality and no longer the future.
To meet these challenges and opportunities, auditors in South Africa must be equipped with the correct skills and knowledge. This includes a deep understanding of emerging technologies and the ability to apply them in an audit context.
“Audit teams’ approach to digital transformation and software adoption needs to be prioritised. They must now also become experts in technology,” says Kim Williams, Head of Talent at SAPRO. “Knowledge is no longer power – it is available everywhere and the ability of auditors to be forward thinking and provide insight and solutions is what will hold the profession relevant.”
The work is no longer limited to honest the numbers. The non-financial, or qualitative elements, are becoming increasingly relevant, and stakeholders need to know more about the business than honest its financial history.
The source of the problem
Williams expresses concern that, as seasoned CAs recede overseas to seek non-audit related work that offers diversity and long-term growth, the audit field will be left strained for capacity, limiting the country’s ability to detect fiscal malfeasance.
There are multiple factors driving migration, including South Africa’s current economic landscape, tied in with a tense political climate, service delivery failures and corruption. These, combined with the financial strain of inflation and exchange rates, can fabricate moving and earning abroad attractive.
“CAs want diverse exposure to, and a wider scope, of projects as their careers pace and audit firms in South Africa offer very dinky, in my opinion,” Williams says. “Employees need to see the long-term view, along with the benefit of staying in the audit field. This is where regulatory bodies and institutions can access involved by assisting in promoting and unpacking relevant topics in the correct forums.”
However, as digital tools hold over certain repetitive tasks, audit firms can start to include a more diverse range of services. These may include, but are not limited to, business consultancy and risk management where analysts scrutinize at the data, study the sector and offer detailed strategies that their clients can implement to not only grow, but maintain staff engaged and fulfilled.
SA audit’s greatest hurdles
By its nature, the audit profession demands integrity and nowadays, the relationships between auditors and clients gain become a grey area, with a lot being swept under the rug that can result in financial collapse.
With South Africa grappling a multifaceted economic crisis driven by inflation and a persistently high unemployment rate, firms must exercise wisdom in each hiring decision.
“Acquiring talent under any circumstances takes time, more so in the challenging audit sector. A position may lay vacant for a while before an individual with the correct qualifications emerges. This may leave audit teams only able to appreciate limited work-life balance and self-care due to strained resources,” Williams says.
“Newly qualified auditors entering the workforce who trained during the pandemic may not believe experienced the typical path of a pre-covid chartered accountant. To meet the resource demand, they may need to be brought up to speed on some legacy systems and team dynamics. Still, tackling the tough conditions of working in isolation gives them a unique perspective they can share,” she says.
Embracing change
Williams does not see automation and AI as a threat, but an emerging technology taking over the mundane, repetitive work with noteworthy precision. This allows auditors to streamline their processes, so they are more efficient and productive, supporting them as they are freed to more creative, strategic work that adds value to clients.
“This would free up valuable time for the profession to truly develop its value-adding services, especially that of helping businesses scrutinize forward, analyse and project results, advising on how to improve,” she says. “Embracing this technology with a growth mindset has the potential to unlock some incredible value adds from our multi-talented experts.”
Those who embrace change and invest in their skills and knowledge will be well-positioned to succeed. Auditors can continue to play a vital role in promoting transparency and accountability in financial reporting, and encourage to build a stronger, more sustainable business environment for all South Africans.
CLICK HERE to submit your press release to MyPR.co.za for free.
Press Release Views since 1 July 2022: 48
impulsive flower
When asked how often they use marketing software, 61% of PR pros report using web analytics software at least monthly. Almost half use email automation software at least monthly as well.
The Happy Jock
The Oscar is the most valuable, but least expensive, item of world-wide Public Relations ever invented by any industry. – Frank Capra
Upper D3Ckr
Reforming the Rockefellers: Speaking of Ivy Lee, in 1914 he achieved another PR milestone when the wealthy Rockefeller family hired him to reform their image. A deadly coal strike had put the family under intense public scrutiny, and Lee organized an in-depth campaign to secure positive goodwill. His tactics include government relations, media relations and even public appearances that sent John D. Rockefeller to meet with the miners personally. The campaign pushed PR onto a much larger platform than ever before and helped define the industry’s relationship with corporations. (Source: Journal of Public Relations Research)