AI’s Impact on the Evaluation of Audit Risk

BDO in the Boardroom

Key Takeaways:

1. Approaching embedding AI into a service delivery model requires:

• Identifying and prioritizing AI business processes and use cases that align with your business objectives
• Assessing the feasibility and potential impact of each use case
• Developing a detailed implementation plan that contemplates the steps, resources, and timelines required for successful AI adoption
• Keeping cybersecurity at top of mind as well as quality assurance approaches.

2. Adoption and use of AI requires encouragement of curiosity and innovation tempered with a good understanding of the risk and challenges AI poses to current methods of obtaining and authenticating data.

3. Compliance with regulatory standards needs to factor into AI change management along with corporate culture, policies and procedures regarding the use of AI.

4. Auditors are currently embracing AI in measured approaches – e.g.:

• Leveraging digital assistants as a gateway to demystify technologies and to bring the talent pool up to speed on the basics – what it is, how they work, and general best practices.

• Using generative AI environments to streamline and further standardize the firm’s service delivery models and build capacity.

• Embedding AI into existing tools to surface unusual and irregular transactions that the humans may otherwise miss as quality focused.

• Considering AI-powered image recognition in verifying physical assets and reconciling with financial records.