Tag: Spotlight on Science and Technology

The new ways of doing business in the digital environment have implicated the current audit practices, specifically in financial audit and have directed the audit function into a new path. Auditors need to handle the changes caused by technologies (Yen, Huang, Li, & Hsiah, 2006) As such, this has led into the necessity of new audit procedures, techniques and tools to evaluate the control in order to mitigate the new business risk (Masli, Peters, & Richardson, 2010).  Further, audit standards have clearly stated that the computer-based controls and computer-assisted audit techniques need to be conducted once audit clients have used advanced enterprise systems and depend broadly on Information Technology (IT) (Abdolmohammadi & Boss, 2009). 

The rapid expansion of artificial intelligence (AI) in the public sector has placed Supreme Audit Institutions (SAIs) at a new frontier of oversight. Amid promises of increased efficiency and significant risks to ethics, transparency, and accountability, the role of SAIs demands technical discernment and institutional autonomy.

In the ever-evolving landscape of financial auditing, the integration of technology has become not just advantageous but essential. This article explores how the use of drones in financial audits, particularly by the São Paulo Municipality Court of Accounts (TCMSP), can enhance accountability and improve the integrity of public resources. The focus will be on the assertion of integrity as cited in International Standards on Auditing (ISA) 315 (Identifying and Assessing the Risks of Material Misstatement), specifically regarding the accounting cycle of real estate assets. The case study illustrates a pragmatic approach to auditing that not only adheres to established norms but also introduces innovative methodologies to address significant issues in public financial management.