An AICPA Trends Report showed that from 2019 through 2020, firms hired 10% fewer accounting graduates. The impact on graduate students has been pronounced as graduate students in accounting now comprise just 57.3% of new hires at CPA firms, while non-accounting graduates represent 42.7% of all new hires.

An explanation provided for this trend is that "firms are demanding skills in data analytics and cybersecurity and IT audit and these other areas. Many graduates coming out of accounting programs don't have those skills, so they have to look elsewhere for that talent."

To help address this problem, the AICPA and the National Association of the State Boards of Accountancy (NASBA) launched an initiative called CPA Evolution. It is apparent that "technological innovations are changing both the services CPAs provide and how they provide them." In recognition of this, the CPA Evolution initiative has resulted in major changes to both the CPA exam and, as a result, the accounting curriculum. The new CPA exam content and accounting curriculum will be designed to better align the skills of accounting graduates with the needs of CPA firms by emphasizing the role of technological innovations and data analytics. Technology concepts will now be incorporated into the exam.

Give examples of how technology is changing the effectiveness of an audit.

Question 2

Audit firms and other employers are looking for candidates familiar with data analytics. They expect you to be familiar with how data tools and techniques can be employed in an audit. If interviewed and asked the following questions:

1. 
   
   2. How can you use big data to increase efficiency in an audit engagement?
   4. Can you describe instances where you used big data to problem solve?

How would you have answered these questions? Reference examples from class and other resources. For example, when describing instances where you used big data to problem solve, think about the exercises you have completed in class. Assume the data sets we used qualify as "big data".

Question 3

1. 
   
   2. What is Blockchain?
   4. Describe ways it could potentially change the role of the auditor.

Answer rating: 100% (QA)

Question 1 Examples of how technology is changing the effectiveness of an audit 1 Data Analytics Technology allows auditors to analyze large volumes of data quickly and efficiently For example softwar... View the full answer