Armstrong Watson is a mid-tier accountancy firm with about 600 employees based across different offices in the north of the UK. One office started the implementation and development of audit analytics, including supplier selection, as well as training and assessment of impact in the adoption of the technology.
The Challenge
A key challenge in adopting new technology for audit processes was proving its value on efficiencies, quality and client value of the audit. Furthermore, changing the “mindset” to get the firm on board. For a mid-tier accountancy firm, implementing such technology comes with significant costs, including staff training and licensing fees. To secure board approval and justify the investment, the firm needed to provide clear evidence of the technology’s success and demonstrate a smooth adoption process, which requires choosing the right technology.
The Solution
To ensure a strategic and evidence-based approach to adoption, the accountancy firm first defined what successful technology adoption would look like. In collaboration with the research team, they developed a success diagnostic tool to assess adoption effectiveness. Once a technology provider was selected, they conducted a staggered rollout, piloting the technology in one office and testing it with different clients. This allowed them to evaluate whether the technology met expectations before scaling it firm-wide.
The Result and Impact
Rolling out the technology in one specific site allowed for sufficient testing, and the auditors could be surveyed, and the impact of the technology on the audit process could be assessed. Those numbers can ultimately be presented to the board to receive the board’s buy-in and a wider rollout. The pilot team has noted significant savings across the journals, testing and general client management through the use of the technology (audit analytics). Furthermore, the technology has enabled a better understanding of the firms being audited with more detailed analysis. This is translated into quality improvements as it allows them and their clients to make better business decisions.
Successful technology adoption is not just about achieving better audit quality, efficiency gains or an increase in client value. It also involves assessing how much training is required, how comfortable both auditors and clients are with the technology, and whether it integrates well with existing business systems. Measuring success throughout the adoption process enables firms to make more informed decisions and refine their approach as needed.
View the case study podcast on YouTube: