Deloitte recently allowed a new audit software that will transform the accounting industry.
The name of the new audit technology is auvenir
What is auvenir? Auvenir is a technology that Deloitte has developed internally and they developed it internally by creating a start up within Deloitte. The reason that they created it is because their was a Deloitte executive that lost sleep over the potential for technology to replace auditors and accountants like Deloitte. Think what uber did to the taxi industry, and what amazon is doing to Walmart. That is what deloitte is afraid will happen to them and the accounting industry if they aren’t innovating.
In order to figure out how Deloitte could be replaced by technology this internal start up company hired actual entrepreneurs and experienced start up personnel. All the technology developed was not Deloitte technology but was instead technology only developed for auvenir.
The way it was built up was by interviewing smaller audit firms and clients. As deloitte interviewed these smaller firms and clients they realized that there wasn’t technology that was suitable for smaller firms. There were really only audit technologies that existed to meet the needs of large accounting firms and large clients.
How does the technology work.
The platform uses cloud-based storage, machine learning and artificial intelligence to improve workflow and collaboration between auditors and their clients.
There are three main components to the machine learning feature that set it apart from other auditing technologies.
The first feature is the automation and standardization of data going into the audit software. The software helps import from accounting packages and banks so that it does not have to be done manually. That allows the data to come in a standardized format and, more importantly, understand the format so we know what the data is there.
The second part is helping audit firms with their decision-making as far as there testing goes. The software allows auditors to decide exactly what tests they want to run on that data and how they want to run those tests.
Lastly, The machine learning component helps auditors judge whether there is a low or high risk from the trends they are seeing. It utilizes past experience from auditors to help the user identify high risk and low risk areas instead of the auditor having to start from scratch each time.
Concerns about Deloitte Auvenir
A concern that has been brought up is where this data will be hosted since Deloitte had a recent data breach. The team that manages auvenir said that auvenir is hosted in a different system than where deloitte’s email servers are hosted so there is nothing to be concerned about. To learn more about Deloitte’s data breach, visit our coverage of the hack. I’ll include links to that in the show notes.
In conclusion Deloitte is the most progressive big 4 company. They are trying to get into every professional services field and every professional service technology possible. This is proven by their latest investment in auvenir. It has been previously proven by their acquisition of marketing companies which is not a traditional field for accountantss. We’ve covered their acquisition of marketing firms in past podcasts and their development of their internal marketing firm called Deloitte heat. I’ll include a link to our coverage of that acquisition in the show notes.
I also think there is another reason that Deloitte is offering this technology to smaller firms. I think they are hoping that those firms increase to a size to where Deloitte can acquire them. I don’t think Deloitte is out there trying to build up its competition.
Deloitte’s development of Auvenir and movement into other professional services shows that they are trying to remain the number one accounting firm spot that they currently hold. I also think it is important for all big 4 candidates and professionals to learn about the new technologies that the firms are developing in order to progress in their careers. If you learn about the newest offerings, you can make sure that you end up in the right firm and the right group in the right firm so that you career can be on the fast track.