The Future of Auditing in 2022
The field of auditing is at an interesting point in its history. On one hand, the way companies are audited hasn’t changed much since the profession was first formed over 100 years ago, and it may take another 100 before we see any major changes to the process. On the other hand, recent technology innovations like mobile delivery apps mean that people today can get food delivered to their front door as quickly as they can order something online, while advances in automation and artificial intelligence mean that companies have more information available to them than ever before, which makes managing inventory easier but also more complex.
Larry Herzog Butler, CPA CIA is the Head of Internal Audit at Delivery Hero. Delivery Hero is an online food-delivery service based in Berlin, Germany. The company operates under various brands across 44 plus countries in Europe, Asia, Latin America, and the Middle East and has partnered with 500,000+ restaurants. Delivery Hero has increasingly branched out beyond food delivery and is a leading player in the emerging category of quick commerce, which delivers small batch orders in under an hour. They are now experimenting in verticals where they have developed D-marts or dark stores strategically located across city centers in certain markets.
“Speed is of the essence and our goal is to deliver as many items as we can as quickly as we can.” Stated Larry. “ When it comes to the D-marts, our aim is to deliver within 20 minutes or less. We're leveraging various technologies to provide that amazing experience for our
“We are investing in sustainable packaging and we're investing in companies that produce plant-based meats. So, when it comes to technological innovation that is in our DNA. That's part of who we are as a company.”
There’s no question that mobile apps are easy to use and significantly increase productivity; that’s why so many businesses invest time and money into them. If you’re an auditor thinking about staying relevant over the next decade, consider getting a background in software development. You don’t necessarily need to know how to code—but you do need to understand how everything from inventory management software to Countifi plays a role in creating operational efficiencies for your company. Accounting professionals often find themselves behind when it comes to new technologies because they tend to specialize in what they know best: accounting.
“Countifi is an inventory management company and we help our clients manage their inventory using computer machine learning.” Stated David Hailey, CEO of Countifi.
The Biggest Opportunities and Challenges to Watch For: As we move forward into a world where more and more people rely on food delivery, auditors will have to keep up with evolving technology—and be ready for an influx of complicated logistics issues. The future won’t be easy for auditors, but there are many opportunities ahead.
Many companies are embracing mobile ordering as it has increased 42% year-over-year, which can present all kinds of challenges to keep inventory tracking secure. But even more interesting is the rise of automation; McDonald’s recently announced plans to completely cut human cashiers out of its restaurants by replacing them with self-service kiosks by 2020. A few brands, including Pizza Hut and KFC have made similar changes in recent months, as well.
The reality is that technology is moving faster than ever before, meaning auditors need to adapt quickly—and learn new skills—to remain relevant. More than ever, auditors and their companies need to utilize companies like Countifi that use artificial intelligence to manage inventory and supply chain. Countifi uses technology to improve how companies manage their inventory and track the movement of assets through the entire supply chain. In addition to tracking physical assets, Countifi can automatically inform service providers when maintenance or repairs are needed.
The future of auditing will focus on efficiency as opposed to checking off a list of random boxes that may or may not hold real value. By 2022, companies will have utilized the automated solutions that Countifi offers to ensure they are meeting all compliance requirements by using technologies like artificial intelligence (AI) and machine learning (ML).