New and emerging technologies, including data analytics, are providing opportunities for auditors to improve the effectiveness and efficiency and overall quality of the audit. This also poses a new set of risks, especially in industries with large and complicated data sets that can cause security and reliance issues for internal and external auditors.

We expect to see a significant increase of data analytics use over the next few years as data analytics capabilities continue to evolve, making this a critical focus area for regulators, auditors, audit committees and management. CPAB supports continued innovation in this area to improve audit quality and expects to issue further communications on this topic as data analytics capabilities evolve and we see more instances of data analytics use in our inspections.