AI & Audit

Question 1

What is AI?

Answer 1

Allows computers to learn and solve problems in ways that can see human

Question 2

How AI impacts auditors?

Answer 2

• client records are changing
• Types of controls testing needed
• Preparation work
• Testing
• Used for summary/ conclusions

Question 3

KPMG report 2024 AI in financial reporting & audit: Navigating the new era

Answer 3

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Question 4

Three key purposes of AI in Audit - KPMG 2024

Answer 4

1. Improve the efficiency and accuracy of audits
2. Develop more proactive, continuous and predictive processes
3. Gather data and value-added audit insights

Question 5

What companies expect from auditors in the future? - KPMG 2024

Answer 5

1. More detail review of control environment (64%)
2. AI governance maturity assessment (53%)
3. Third-party attestation over the use of AI (34%)
4. Same role that they currently play (24%)

Question 6

Activities auditors should prioritise for using geAI - KPMG 2024

Answer 6

• Risk Mitigation (55%)
• Data analysis (54%)
• Risk Identification (49%)

Question 7

Barriers to AI

Answer 7

• Lack of training
• Tech is not useful
• difficult to use
• Expensive
• Inability to access client data/ client privacy
• Concerns about accounting rules

Question 8

How do we practically implement AI in Audit?

Answer 8

• provide employees with the tools
• improved search capabilities
• Process large data sets
• Dynamic risk assessments
• Collecting client information
• Controls monitoring solution

Question 9

Inflow

Answer 9

• Current tool being used by auditors

Question 10

Data snipper

Answer 10

• Current tool being used by auditors
• Excel add-on

Question 11

EY Canvas

Question 12

EY Helix

Question 13

Limitations

Answer 13

AI is only as good as the input:
- Bias in code
- Hasn’t experiences the event
- Relies on too heavily (not an end product)
- Will we loose knowledge?