ARTIFICIAL INTELLIGENCE (AI)
HAS THE AI SUMMER ARRIVED IN THE AUDIT SECTOR?
EXPLORING OPPORTUNITIES AND THREATS In recent years, the auditing profession has been undergoing a transformative shift, primarily driven by advancements in artificial intelligence (AI)/machine learning (ML) technologies. Traditionally characterized by labour-intensive manual verification processes, the audit landscape has found itself at an intersection of unprecedented opportunities and challenges, spurred by the digital era's massive data generation and escalating unethical behaviours.
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PROF BOMI NOMLALA, PROF MABUTHO SIBANDA AND HELPER ZHOU (PHD)
University of Kwazulu-Natal, School of Accounting Economics and Finance
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everaging a range of AI tools, including Natural Language Processing for document analysis, Robotic Process Automation for data recon and validation, and predictive analytics for risk assessment, auditors globally are exploring innovative avenues to enhance efficiency and accuracy in their processes.
Advancing Auditing &Accountability
Furthermore, initiatives like the US government’s AI-driven analytics to identify financial discrepancies and Singapore AG’s office's deployment of AI tools for financial data analysis underscore a burgeoning trend in AI adoption within the public sector. While private entities lead in harnessing AI capabilities, governments globally are not far behind, taking pivotal steps towards integrating AI in audit procedures, with the United States and Singapore being notable examples, thereby highlighting a global shift towards an AIaugmented audit process.
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