Optimizing the Audit Process of Investment Properties Through the Use of Data Analysis and Robotics Process Automation

Abstract

In recent years, the digitization has dramatically transformed various industries, including auditing. This thesis investigates the impact of data analysis and Robotic Process Automation (RPA) on the audit process of investment properties. As investment properties often represent a significant part of a company’s balance sheet, auditing them poses unique challenges, particularly regarding the valuation of these properties. This thesis focuses on how technological advancements, where particularly data analytics and RPA, can streamline the audit process and improve both efficiency and accuracy.

Drawing on interviews with two experts, one a traditional auditor experienced with investment properties and the other a leader in innovation, analytics and automation, the thesis explores the current state of automation in auditing. These interviews reveal both the opportunities and challenges of integrating data analytics and RPA into audit workflows. The findings highlight that while traditional audit methods still dominate in many areas, the application of technology-based tools is growing.
The study further examines the regulatory landscape, particularly the implications of ISA 315 and The Danish Financial Statements Act, and how these standards and regulations are shaping the integration of digital tools in audit practices. The thesis also explores the expectation gap between what the public expects from auditors and what they can realistically deliver, and how technologies like RPA could help bridge this gap.

By comparing the benefits and limitations of traditional audit methods against modern data-driven approaches, this research concludes that the use of data analytics and RPA not only enhances the efficiency of the audit process but also enables auditors to better assess high-risk areas, such as property valuations. However, the adoption of these technologies requires auditors to continually develop new skills and update existing, particularly in data interpretation and the use of specialized software. As audit firms continue to adapt to these technological innovations, ongoing training and development will be critical to ensuring that auditors can leverage these tools effectively.