How auditors harness responsible AI to identify trends and sharpen focus on risk
According to data from the Center for Audit Quality (CAQ)1, As the business landscape grows increasingly complex, auditors are also considering how to responsibly adopt AI to identify trends and continuously sharpen their focus on risk.
Auditors have an opportunity to leverage AI-enabled data processing and analytics, allowing them to drill into large volumes of data to identify risks and deliver greater insights. In a recently released CAQ survey, 45% of institutional investors noted enhance risk assessment and prioritization as an advantage of integrating AI into the audit process, and 64% believe the use of AI will improve audit accuracy and efficiency. However, the same survey found that 40% perceived reduced human oversight as a challenge.
At the foundation of responsible AI integration is the objectivity, independence and professional skepticism that auditors bring to their work every day. Auditors who consistently exercise critical thinking and focus on enhancing audit delivery by developing their own AI usage capabilities will be best positioned to drive quality audits that management and boards can use to boost trust and confidence.
At the foundation of responsible AI integration is the objectivity, independence and professional skepticism that auditors bring to their work every day.
Robust governance frameworks drive responsible use of AI
Today, there are more opportunities to embed AI into the audit process. With AI-enabled search capabilities and the summarization of accounting and auditing content, audit teams can distill millions of lines of unstructured data and deliver information that business leaders can use to unlock valuable insights more quickly. At Ernst & Young LLP (EY US), we’ve invested $1 billion over three years in talent and technology to revolutionize the experience of early career accounting professionals. As digitization and AI technologies reshape the industry, AI-powered capabilities are being built into the global EY organization’s core audit platform tools to enhance audit quality, improve productivity, support risk assessment and deliver better insights on key business issues.
An ongoing commitment to developing and using AI ethically and responsibly is paramount. Critical thinking and professional skepticism are in the DNA of an auditor, but organizations must also provide proper governance to guide responsible AI usage and keep human judgment at the center of the audit. As one example of this, we use Responsible AI principles at EY US to provide a robust governance framework emphasizing reliability, security and transparency, empowering our audit teams to continue to approach the audit process with accountability, integrity and professional skepticism.
AI-powered capabilities are being built into the global EY organization’s core audit platform tools to enhance audit quality, improve productivity, support risk assessment and deliver better insights on key business issues.
AI adoption requires an ongoing commitment to training and development
Effective training and career development are at the heart of responsibly integrating AI into the audit. Auditors must have the skills to navigate AI-enabled tools and develop an understanding of how to use them to enhance the audit process. Like many firms across the accounting and audit profession, EY US is investing in learning strategies that elevate and expand AI skills. Through courses like Responsible AI, Applied AI and AI Engineering, we encourage innovation while embedding integrity and accountability into our culture. Our 360 Careers, an immersive learning experience for early-stage professionals, offers development opportunities in areas like innovation at the start of their career journeys so our people are empowered to use AI as a tool to support audit execution. This employee focus is a critical component of responsible AI adoption and is important to the profession’s efforts to instill trust in the audit and deliver value to those who rely on it.
Through courses like Responsible AI, Applied AI and AI Engineering, we encourage innovation while embedding integrity and accountability into our culture.
Leveraging AI to drive quality audits and differential insights
As AI adoption is driven further, fueling the transformation of the audit and equipping audit teams to drive quality audits, a focus on analysis and critical thinking will remain crucial. Keeping responsible AI practices at the forefront, auditors will harness this combination to generate differential insights that boards and management can use to drive decision-making and strengthen confidence. Professional skepticism, integrity and accountability will remain at the core of the audit profession, in tandem with a focus on continuous learning to keep pace with the rapidly changing business landscape.
The views reflected in this article are the views of the author(s) and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization or the views of the CAQ.
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