Abstract

This paper examines the integration of Robotic Process Automation (RPA) within the auditing sector in Bangladesh. It explores the current landscape of auditing, the benefits and challenges of RPA adoption, and the associated costs. The findings suggest that while RPA offers significant advantages in terms of efficiency, accuracy, and cost-effectiveness, various barriers must be addressed to facilitate its widespread implementation.

Introduction

The auditing profession in Bangladesh is undergoing a transformative phase, driven by advancements in technology and increasing demands for transparency and efficiency. Robotic Process Automation (RPA) has emerged as a vital tool that can enhance audit processes by automating repetitive tasks, thereby allowing auditors to focus on more strategic analysis. This paper aims to analyze the potential benefits and challenges of RPA adoption in Bangladesh’s auditing sector, as well as the financial implications associated with its implementation.

Current Perspective of Auditing in Bangladesh

The auditing profession in Bangladesh faces several challenges, including:

• Low Audit Fees: Many organizations perceive audits primarily as a compliance requirement rather than a value-added service, leading to lower fees that can compromise audit quality.
• Limited Resources: The sector often operates with constrained budgets, which affects the ability to invest in advanced technologies.
• Skills Shortage: There is a notable gap in skilled professionals who are trained in modern auditing practices and technologies.

These factors contribute to skepticism regarding the credibility of audits and highlight the need for innovative solutions such as RPA.

Benefits of RPA in Auditing

Increased Efficiency

RPA can automate time-consuming tasks such as data entry, reconciliation, and report generation. By implementing RPA, organizations can achieve productivity increases of up to 75%, significantly reducing the time auditors spend on routine activities (KPMG, 2022).

Enhanced Accuracy

The automation of data handling minimizes human error, which is crucial for maintaining data integrity. In an environment where financial transparency is essential for attracting investment, RPA can help ensure that audit findings are reliable and accurate.

Comprehensive Data Analysis

RPA enables auditors to analyze entire datasets rather than relying solely on sampling methods. This capability allows for a more thorough assessment of potential risks and anomalies, enhancing overall audit quality.

Cost-Effectiveness

The initial investment for adopting RPA in small to medium-sized enterprises in Bangladesh typically ranges from $5,000 to $15,000. Although this upfront cost may be a barrier for some organizations, the potential long-term savings from increased productivity and reduced labor costs can lead to a return on investment within 12 months (Deloitte, 2023).

Current Adoption of RPA in Bangladesh

Several organizations in Bangladesh have begun adopting Robotic Process Automation to enhance their auditing processes. Notably, Technometrics Limited, a prominent IT solutions provider, has implemented RPA within its operations. This company focuses on automating various business processes, including those related to business development and audit functions. Their RPA initiatives aim to streamline repetitive tasks, thereby improving efficiency and accuracy in service delivery. Additionally, research indicates that the adoption of RPA is being explored among micro and small audit entities in Bangladesh. A study highlights the potential benefits of RPA technology in these organizations, suggesting that it can significantly improve operational efficiency and the quality of audit outputs (Islam & Rahman, 2022).Overall, while the adoption of RPA in Bangladesh’s auditing sector is still in its early stages, there are promising examples of implementation that could pave the way for broader acceptance and integration of this technology across various organizations.

Challenges to RPA Adoption

Despite its advantages, several challenges hinder the widespread adoption of RPA in Bangladesh:

Skills Gap

There is a significant shortage of professionals trained in RPA technologies. Educational institutions must adapt their curricula to include training on automation tools and techniques.

Infrastructure Limitations

Reliable internet connectivity and power supply are critical for effective RPA implementation. Inconsistent infrastructure can impede the successful deployment of automation solutions.

Regulatory Framework

A clear regulatory framework governing the use of automation technologies in auditing is necessary to ensure ethical practices and compliance with established standards.

Conclusion

The integration of RPA into the auditing sector presents an opportunity for Bangladeshi firms to enhance efficiency, improve accuracy, and reduce costs. While the initial investment may pose challenges for some organizations, the long-term benefits make it a worthwhile consideration. Addressing barriers such as skills shortages and infrastructure limitations will be crucial for maximizing the impact of robotics in auditing across Bangladesh’s financial landscape.

References

• Deloitte. (2023). The Future of Auditing: Embracing Automation. Retrieved from Deloitte Insights.
• Islam, M., & Rahman, M. (2022). Exploring Robotic Process Automation Adoption Among Micro and Small Audit Firms: A Study from Bangladesh. Journal of Business Research, 145(1), 123-134.
• KPMG. (2022). Robotic Process Automation: Transforming Audit Practices. Retrieved from KPMG.