Undertaking audit work
In recent years, audit systems have been becoming more powerful. As AI is incorporated into these systems they attempt to offer a hybrid intelligence, where the AI leaves key decisions to the human auditor. You must be the judge of whether they have got this balance right. Data driven audit systems can help automate an increasingly wide range of audit tasks. Data acquisition and ingestion (i.e. getting the client’s data into the audit system). Audit data analytics (ADA) and visualisations to understand the client’s data better.
The Irish audit regulator IAASA, published a review of the use of data analytics in Ireland’s statutory audit market. Whilst audit data analytics tools do not necessarily use AI, the report notes that AI tools continue to learn through observations of data in real time and therefore could lead to difficulties in evidencing the exact tests run on the data. It is currently a requirement for statutory audit evidence to include the details of a test run, so that work can be retested or checked if necessary. The study also notes that there is significant firm-wide programme development with digital accelerators, academies and central support of journals-based technology as key areas of focus.
Sample selection, especially with complex areas such as journals. Substantive testing using ADA.
AI AND ETHICS | PART TWO: UNDERTAKING AUDIT WORK
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