The Industrial Revolution in the 18th and 19th centuries came with a lot of transformations and innovations that gave rise to the use of machines and fundamentally changed the ways humans live. Each century seems to bring peculiarities and changes. Notably, the 20th and 21st century – otherwise referred to as the digital age – has brought a lot of disruptions to our world.
While auditors and other professionals are still trying to make sense of emerging technologies and innovations like blockchain and cryptocurrencies, the hype around the Metaverse and Non-Fungible Tokens (NFTs) is suddenly everywhere.
The concept of a virtual world existed before now in fiction novels, films and on platforms that allow people to create a digital representation of themselves and live in a non-physical space.
According to Today Digital “Metaverse can be defined as a simulated digital environment that uses Augmented Reality (AR), Virtual Reality (VR), and Blockchain, along with concepts from social media, to create spaces for rich user interaction mimicking the real world”.
Metaverse provides a sense of realism and presence that will make it possible for people to live and connect in the virtual world by wearing VR/AR headsets. Some of the use cases include gaming, entertainment, work, education and commerce. The thought of a workplace that exists in a virtual world is no longer out of reach.
The COVID-19 pandemic accelerated the adoption and wider acceptance of remote working, and most organizations are already considering this the new normal. Adoption of Metaverse will further aid working remotely.
An auditor cannot help but think of what it will look like auditing in a Metaverse environment. The possibility of auditing remotely from any part of the world and engaging auditees in a more agile way will be assured – even as emphasis shifts from auditing technology to using technology as audit tools.
Though the technology is not yet at an advanced stage, a lot of big companies and organizations are already working toward the adoption of Metaverse into their processes. However, business success is not so much about adopting new technology as it is about adopting relevant technology.
While Metaverse seems like the next big thing, it is still uncertain that it will revolutionize our world and fundamentally change the way we do things.
However, some potential benefits, use cases and risks of Metaverse include the following:
Remote Audit Reviews
One of the challenges of traditional audit is the inability to cover the whole audit universe due to distance and time constraints. Metaverse can provide an enabling environment and platform to achieve a thorough remote audit by offering a one-on-one engagement/interview with the auditees. This is much better than a long-distance call, which is less engaging.
Agile Audit Adoption
Agile auditing is gaining wider acceptance because of its ability to crack difficult audit areas and value-adding potential over traditional auditing. Agile audit values individuals and face-to-face interactions over processes. Hence, auditing in a Metaverse virtual world will enhance a wider adoption of agile audit.
Challenges/Risks
A major setback in the adoption of Metaverse as an audit tool will be getting skilled content creators to design and manage the platform for organizations interested in using it. In addition, user-friendly headsets will have to be designed to reduce discomfort.
The risk inherent in the usage may include identity theft and a lack of proper tools in place to verify and authenticate the personality behind the avatar in use. Over time, these and other concerns will gradually be addressed.