AI set to revolutionise the audit profession, RSM says

RSM audit partner Matthew Beevers said that artificial intelligence is on track to transform the way that auditors work, shifting their workloads away from compliance and towards advisory tasks.

“As proprietary and commercially available AI-driven platforms surge in popularity, the world of audit is changing,” Beevers wrote.

“A ‘super brain’ capable of analysing millions of data points in mere minutes is a technological advantage for any auditor.”

With more time freed up by AI automation, auditors would be able to spend more time advising their clients and diverting attention to more complex audit areas, Beevers said.

"At this stage, we’re focusing on implementing AI to improve quality and efficiency in more routine tasks, which has allowed us to put more of our focus towards some of the more complex and higher risk areas of the audit," Beevers told Accounting Times regarding his own team's implementation of AI tools.

According to Beevers, AI could free up auditors' time to work on more engaging, rewarding work. In the context of the accountant shortage, a shift from compliance to advisory work could make the audit profession a more attractive option for future talent.

“Clients and their auditors both benefit from engaging in more poignant discussions around a client’s business,” Beevers said.

“Many auditors have an affinity for numbers and are skilled in spotting correlations and trends in data. These conversations provide auditors additional opportunities to share their observations with clients, who can use the insights to improve operations.”

Due to AI’s unique capability to rapidly sift through large sums of data, Beevers said that ‘full audits’ are set to become more scalable and efficient, improving their quality and comprehensiveness.

For now, auditors typically select representative data samples when conducting an audit, as sifting through entire datasets is typically unfeasible and inefficient. AI is set to change that reality.

“AI is already capable of sorting vast amounts of data in seconds. That means a future where auditors no longer rely solely on sampling is reasonably foreseeable,” Beevers said.

By leveraging AI, auditors could quickly uncover minor anomalies, more effectively detect errors and fraud, run a greater variety of queries and quickly identify areas that need attention.

However, Beevers cautioned that the use of AI did not come without risks.

Audit professionals would have to manage new risks related to data security and confidentiality as AI tools become more common.

He added that an over-reliance on AI tools over professional judgement could introduce errors and lead to poorer audit quality.

“We ... cannot overlook the potential for AI to get it wrong on occasion. Anyone who has used AI chat engines to answer questions will know they are not always accurate. The potential for inaccuracy in an audit can have serious repercussions,” Beevers said.

While AI is set to become a useful tool in auditors' toolkits, an element of professional judgement would always be necessary, especially in contexts where errors could entail large consequences.

“It is critical to balance AI capabilities with the judgement of an experienced professional. An experienced auditor has sifted through hundreds of clients’ financials across diverse sectors," he said.

"This experience enables them to make connections that AI cannot. We will always need that human element.”