In recent times, however, this age-old scenario is showing signs of change. Around the country, auditors are beginning to better utilize technology to deal with their clients. Here are three trends picking up steam:

Electronic schedules
More auditors are obtaining electronic, rather than hard-copy, "Prepared By Client" schedules. In some cases, the auditor gives the client a template to complete. The template is then returned on disk or through email.

Electronic schedules produce numerous benefits. For starters, the data is legible. Second, the information is obtained in a format preferred by the auditors (especially if the auditor gives the client a template). Finally, the auditor is able to perform various procedures (e.g., footing, cross-footing, recalculations) by checking formulas rather than by actually doing these hideous tasks.

Email Communication
An increasing number of auditors are communicating with their clients through Email. Common examples include:

• checking on the status of schedules before fieldwork begins
• asking quick questions during fieldwork (rather than interrupting the client during the day or, for example, waiting for the client to get off the phone while standing in the hallway)
• inquiring about pending items after fieldwork ends

Auditors can also attach documents like PBC lists, sample confirmations, representation letters, and draft reports. Clients can send schedules, status reports, draft reports with edits (using the revisions function), etc. In short, email communication is often faster and more convenient than messing around with fax machines, snail mail, or other alternatives.

Accessing the Client's Data
For years, some auditors have known that it can make sense to retrieve information from the client's system (Just retrieve data, not change it!). Understanding how to use the client's system allowed these folks to gather data without bothering the same people who were too busy to prepare important schedules.

This opportunity continues to present itself occasionally, but a more exciting trend is emerging in audit shops around the country. Auditors are using extraction software to obtain the client's data. Unlike the previous scenario where flexibility is limited (i.e., you view data in a "read-only" mode at a client's terminal), data extraction software allows you to manipulate the data in any fashion you like. Armed with a client's data file, the auditor can create virtually any report that he/she wants without bothering the client!

The two leading data extraction packages are ACL and IDEA. Less powerful software like Monarch can also be useful in a limited number of situations.

In future years, it will be increasingly difficult to audit without using such tools. The Journal of Accountancy recently estimated that "80 percent of business communication, which includes billings, notices, mail, and payments, will occur electronically by the year 2000." Statement on Auditing Standards No. 80 states that "it may be difficult or impossible for the auditor to access certain information for inspection, inquiry, or confirmation without using information technology."

Yes, the future is coming fast.