KMS Ltd. has recently undergone a major digital transformation by integrating new technologies such as cloud-based accounting software, automated…

Key Steps for Auditors in a Changing Technology Environment: As auditors obtain an understanding of the impact of technology on a company's business, its systems of internal control, and its financial reporting, some important reminders include the following: Maintain sufficient professional skepticism when reviewing management's risk assessment for new systems.Understand the direct and indirect effects of new technology and determine how its use by the entity impacts the auditor's overall risk assessment.Understand how the technologies impact the flow of transactions, assess the completeness of the in-scope ICFR systems, and design a sufficient and appropriate audit response.Assess the appropriateness of management's processes to select, develop, operate, and maintain controls related to the organization's technology based on the extent the technology is used.