How AI makes an impact on audit methodology and engagements
Learn how to better analyze risk assessments by combining AI-powered audit methodology, technology, and data analytics in audit engagements.
Today’s clients want more insights from their accounting firms, including valuable data-driven analytics. With the dawn of AI, auditors are well-positioned to meet these needs, however, they must move fast or risk falling behind the competition.
Bringing AI-powered data analytics to audit engagements
Has your firm experimented with data analytics tools? In a recent survey, 60% of 450 respondents said “not yet” or “no” to this question. But are your current audit processes offering the best insights and services to your clients?
With emerging technologies like AI, data analytics, machine learning, and blockchain changing the face of the accounting industry, firms are more focused than ever on innovation that will propel them into the next generation of audit automation. While change can be hard, especially in a firm that already has reliable methodology in place, ignoring this technology puts your firm at a serious disadvantage.
Why? Because AI-powered audit software can quickly analyze vast datasets, identify patterns, anomalies, and potential risks with exceptional speed. This allows you to focus on more complex and strategic aspects of your work, such as interpreting results and providing experience-based insights to your clients.
In addition, AI facilitates predictive analytics, which can help your firm anticipate potential risks and trends based on historical data. This proactive approach enhances the risk identification and decision-making process, providing a more comprehensive understanding of the financial landscape.
And, with the ability to continuously learn from auditors’ interactions, AI and machine learning algorithms can also adapt to changing industry regulations. This enables AI tools to become more sophisticated over time—a critical capability in an ever-changing profession.
Audit methodology: Transforming risk assessments with AI
Traditionally, auditors have heavily relied on manual processes to uncover risk in financial statements and business operations. While this methodology can be effective to a certain extent, it is certainly time-consuming and vulnerable to human error.
Enter the power of AI. With assisted decision making capabilities, AI-powered audit software can proactively tap into anonymized data from the audit community who have faced a similar risk scenario. By proactively suggesting areas of risk you may not have considered, your audit team is empowered to complete audits more efficiently and confidently.
Not only does assisted decision making enhance the risk identification process, but it also allows you to continue working without ever leaving your audit engagement. With the right technology partner, your firm can incorporate these capabilities seamlessly rather than disrupting your existing workflow.
Leveraging AI for an automated, risk-based engagement process
In today’s competitive business landscape, clients demand more than just financial compliance. They expect their auditors to leverage AI to offer a holistic view of their financial well-being, identify opportunities, and suggest strategies for improvement.
If you’re thinking about upgrading your audit software, it can seem like a daunting task, but once you make the change, you can let the technology do more of the work for you. Data analytics in audit and AI technologies will continue to evolve in the tax and accounting industry, making the audit methodology process increasingly effective and efficient.
Imagine a guided, start-to-finish audit preparation, compilation, and review tool that complies with professional standards and ensures you pass peer review. Backed by the power of AI, you can leave over- and under-auditing behind and create a customized audit program based on documented risks and assertions. With peer-to-peer insight on how your firm’s identified risks stack up to similar industry engagements, you’ll surprise and delight your clients—and give your firm a leg up on the competition.
At the end of the day, embracing AI enables your firm to quickly meet accelerating demands, while boosting audit efficiency and quality. And with Thomson Reuters as your technology partner, all this can be done with a short learning curve and without disrupting your existing processes.
To learn more about how your firm can incorporate AI for a competitive edge, download our latest whitepaper, What AI can do for auditing.
And if you’re ready to accelerate your audit practice with advanced data analytics that combine proven methodology with AI-powered technology, learn more about Thomson Reuters Cloud Audit Suite.
