New GenAI report signals shift for the audit industry
The 2024 Generative AI in Professional Services Report from the Thomson Reuters Institute offers insight into GenAI perceptions and usage based on responses from nearly 1,200 professionals from various industries, including audit.
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While not everyone agrees on its adoption, more than half of the professionals surveyed believe that GenAI should be part of their daily workflow, and many are already integrating it to their advantage. For auditors, this means faster and more accurate audits driven by an automated, risk-based engagement process and assisted decision making.
No matter which side of the conversation you stand on, GenAI will undoubtedly have some level of impact on the audit industry, and in turn, your firm. Let’s take a look at how tax, accounting, and audit professionals perceive the use of generative AI in their workplaces, the extent to which they are integrating it into their processes, and how it will transform the future of audit work.
Perceptions of GenAI among auditors
According to the survey, most respondents agreed that GenAI is in their profession’s future, but many also believe that there are a host of changes coming with it.
Across both the legal and tax industries, about half of respondents said that they believe GenAI is either a major threat or somewhat of a threat to industry jobs. Similarly, just under half said they believe GenAI is a major threat or somewhat of a threat to the need for lawyers or tax professionals, and that billing and firm revenue will be impacted by the technology.
However, with the right mindset this perceived threat could become an opportunity. The increased efficiency and productivity that GenAI offers paves the way for auditors to better analyze risk assessments, improve efficiency, and generate meaningful insight. This opens the door to more lucrative advisory services and stronger and more meaningful relationships with clients.
Potential use cases and adoption of GenAI in auditing
Regardless of perception, survey respondents acknowledged that GenAI is here to stay. While tax and accounting firms were the least likely to believe GenAI could apply to their work than other professionals, 73% still said “yes.”
Perhaps that is due to GenAI’s ability to enable data analytics, fraud detection and prevention, automated report generation, real-time auditing, and predictive analytics. As more and more clients expect their auditors to provide more than just financial compliance, Gen AI can enable a holistic view of financial well-being, along with opportunities for growth and continuous improvement.
The impact of GenAI on auditing
So how does GenAI impact audit workflow? Imagine an automated, risk-based engagement process with comprehensive audit preparation, compilation, and review powered by AI that ensures compliance with professional standards and facilitates peer review. With AI’s assistance, auditors can create customized audit programs based on documented risks and assertions, eliminating over- or under-auditing.
In addition, AI-powered audit software can quickly analyze vast datasets, identify patterns, anomalies, and potential risks with exceptional speed. This allows auditors to shift their focus to more complex and strategic tasks, such as interpreting results and providing experience-based insights to clients.
And using predictive analytics, GenAI can forecast future trends and risks by analyzing historical data. This predictive capability enables auditors to provide proactive advice to businesses, helping them to mitigate risks proactively.
From an accuracy standpoint, AI-powered audit software offers assisted decision making capabilities that proactively tap into anonymized data from the audit community who have faced a similar risk scenario. By suggesting areas of risk you may not have considered, your audit team is empowered to complete audits more efficiently and confidently.
At the end of the day, GenAI technologies allow firms to extend their work beyond the audit, offering enhanced advisory services and strategic business insights to their clients. This leads to increased job satisfaction, stronger client relationships and, ultimately, greater profitability.
GenAI integration and training
Amidst so much change, some advanced accounting and audit firms are already beginning to plan for the impact of GenAI and the new ways of working that will come with it.
According to the survey, respondents from corporate risk departments (38%) and corporate legal departments (25%) reported the highest proportion of GenAI training for staff, while less than 20% of law firm and tax firm respondents said they had received GenAI training.
Moving fast to integrate GenAI and training your staff on how to take full advantage of this transformative technology can become a competitive advantage for your firm. In addition to proper training, adopting the right AI platform — supported by a dedicated team— can ensure your firm gains the precision, efficiency, and data-driven insight to transform processes, wow clients, and boost profitability.
Download the full report to discover comprehensive data and in-depth analysis that will empower your firm to harness the potential of GenAI.
