Artificial intelligence in auditing – the changes arriving for the industry and clients

OBT Ltd is monitoring the latest developments and is already evaluating potential applications for AI-supported systems. Despite the high expectations placed on AI, it is clear that human judgement remains irreplaceable. This article highlights the opportunities and challenges associated with integrating AI into auditing. 

The use of new technologies is fundamentally changing the face of auditing. The efficiency and quality of audit procedures is being improved by automating processes and massively increasing the volumes of data that can be audited. Language models such as ChatGPT can be used to optimise the preparation of work documentation and audit reports by processing and interpreting large volumes of data.  

Technologies such as computer vision, process mining and clustering enable documents and processes to be analysed quickly and precisely, making it easier to meet compliance requirements and identify weak points. Natural language processing (NLP) and text mining can help to analyse unstructured text data, while predictive analytics, robotic process automation (RPA) and blockchain are driving forward risk assessment and process optimisation.  

These developments are opening up new possibilities in risk analysis and fraud prevention. However, the performance of AI is heavily dependent on the quality and availability of the underlying data, which can lead to distortions if there is insufficient historical data or if new contexts are required. 

Customer relationships and human judgement remain indispensable 

The use of new technologies is changing the focus of auditors’ activities. AI can take over time-consuming tasks, leaving auditors free to concentrate on more complex, value-adding activities, especially in personal client work, where human judgement and empathy remain indispensable. 

In contrast, repetitive tasks such as checking documents or analysing changes can be carried out more quickly and to a higher standard of quality by AI. The most important prerequisite for making efficient use of AI tools is a clean database. There are three aspects that we advise companies to clarify in the short term. They need to make sure that they have a clear AI strategy, a solid governance structure and a well-equipped IT department. This will allow them to harness the full potential of automation and facilitate future developments. 

The auditing profession is changing 

AI will not replace auditors, but can be used to complement their skills, especially for data analysis and decision-making. Although AI delivers precise analyses and automates routine tasks, human expertise remains essential for interpreting this data and advising clients.  

 However, the integration of AI into auditing requires new skills, especially in relation to data analyses and AI technologies. AI may even create new jobs by boosting demand for professionals with AI skills whilst expanding the role of auditors to include monitoring and interpreting AI-generated results. Consequently, the digital transformation is opening up a wide range of opportunities, but also posing major challenges for the industry. 

Data quality, data protection and data security are crucial 

It is vital to have a structured, standardised and cleaned database to avoid incorrect analyses and false conclusions. Auditors then need to process the data carefully to ensure conclusive audit results.  

AI algorithms must work transparently and comprehensibly in order to maintain the trust of all stakeholders and meet regulatory and data protection requirements. Clear guidelines are necessary to clarify responsibilities in the event of errors or distortions in AI systems.  

Data security and the protection of sensitive information are particularly important, as the risks of cyber attacks increase with greater digitalisation. International auditing companies must comply with strict regulatory requirements, such as the AI Act, the nFADP and the NIS 2 Directive, which can vary from country to country. Trust in AI systems depends on their efficiency, transparency and traceability. AI systems must be checked and updated on a regular basis to ensure that the results are correct and up to date. 

Conclusion 

The integration of AI into auditing offers considerable opportunities for increasing the efficiency and effectiveness of audits, but also requires a responsible approach. Human judgement and expertise remain indispensable, as these elements determine the final quality of the audit. OBT Ltd believes that the future of auditing looks promising with AI, as it will revolutionise the speed and quality of processes. To ensure competitiveness and reliability, clients must make sure that they have a clear strategy and a well-equipped IT department. The digital transformation has begun, bringing everything from modern analysis tools to self-learning AI tools – but there is still a long way to go. We will be happy to help our clients as these exciting opportunities take shape.