The document discusses how technology is rapidly changing the auditing profession. Advances like cloud computing, data analytics, and automation are improving efficiency but also threatening some jobs. Auditors must embrace new technologies to stay relevant, through tools that help with tasks like verifying transactions and detecting exceptions. Fully automated audits may soon be possible using real-time systems and artificial intelligence. However, auditors also need solutions tailored for different client types to optimize the audit process in this new digital environment.

1. The Digital age is here!
SMSF compliance in 2014 looks like this:
 Rapid advances in technology
 The fastest growing companies are tech-based
 High demand for fast, accurate and competitively
priced services
 Buzz words of today: Collaboration and integration
 Technicians are being replaced by entrepreneurs
 Cloud computing and offshoring widespread

2. Why is this happening?
 We all want real-time information NOW
 If it can be done, we should be doing it
 Global competition is a reality
 People are expensive!
 Big money is being attracted to SMSF, providing an
opportunity for innovation and change
 Gen X and Y are moving in

3. The auditor’s position in the value chain
 The only compulsory annual service
 Vital protection mechanism
 Opportunity to educate and raise standards, reporting to
administrators and Trustees
 Provide confidence to the regulators that the system is
robust
For the value chain to achieve its’ optimal performance,
auditors must close the technology circle.
Not sit out on their own at the end!!

4. How Disruptive is Digital?
 If we do what we’ve always done, we will no
longer get what we’ve always gotten
 Those who don’t change will be out-priced and
out-performed
 Even worse, if we can’t convince the industry of
our value, we may become obsolete!
 94% chance your job will be computerised in the
next two decades

5. What do we do that can be
improved by technology?
There is not a single task that auditors do
that can’t be improved by technology.
– Receiving data / files
– Workflows
– Data entry
– Audit Planning
– Materiality calculations and exception reporting
– Analytical testing (data analytics)
– Verification of holdings and valuations
– Documenting audit testing and conclusions
– Report preparation

6. Not just Replaced but IMPROVED
Automation has the potential to remove the risk of human error, sampling
errors, and variations in auditor judgement between auditors.
ASIC –Friday 27 June 2014 ASIC
“In our view, in 20% of … key audit areas that we reviewed across …audit files at firms of
different sizes, auditors did not obtain reasonable assurance that the financial report as a
whole was free of material misstatement”
Commissioner John Price said, “While audit firms have made good efforts to improve audit
quality, these are yet to be reflected in our risk-based inspection findings”.
“Our inspections suggest that the following three broad areas continue to require
improvement by audit firms:
1. the sufficiency and appropriateness of audit evidence obtained by the auditor

7. Current technology for auditors
 “Live” portals
 CRM workflow
 Salesforce
 Online audit workpapers that automatically (and intelligently)
populate based on the financial information of the client
(download straight from from admin software)
 Analysis tools that check and validate data – from highlighting
exceptions to verifying bank balances, transactions, property
holdings, shareholdings (CAATTs).
 Adobe (editable version)
 Data feeds
 Social media tools

8. What not to do
 Fail to make use of technology already available
 Repeat what’s already been done in the value chain!
 Waste money on technology that adds nothing
 Use developers not dedicated to your projects
 Ignore the technology of your clients
 Assume that if you build it they will come

9. Can Audit be Fully Automated?
YES!!
It is ENTIRELY POSSIBLE
that we will be able to build
a real-time audit robot
that fully automates the audit process.
Even auditor judgement CAN be programmed.

10. My view of the future of SMSF
 Transactions audited as they happen
 Fully integrated, intelligent system of systems.
 Auditors will need to customise solutions for different
markets segments:
 Direct trustees (B2C, chinese walls)
 Accountants (outsourcing)
 Administrators (large scale)

11. 1300 283 487
www.superfundauditors.com.au
Brisbane | Gold Coast | Sydney | Central Coast Melbourne | Tasmania

12. Disclaimer
© Jo Heighway, ENGAGE Super Audits, 2014
This presentation is for general information only. Every effort has been made to
ensure that it is accurate, however it is not intended to be a complete
description of the matters described. The presentation has been prepared
without taking into account any personal objectives, financial situation or
needs. It does not contain and is not to be taken as containing any securities
advice or securities recommendation.
Furthermore, it is not intended that it be relied on by recipients for the purpose
of making investment decisions and is not a replacement of the requirement for
individual research or professional tax advice. This presentation was
accompanied by an oral presentation, and is not a complete record of the
discussion held. No part of this presentation should be used elsewhere without
prior consent from the author.