The adoption of artificial intelligence by firms like KPMG and EY is revolutionising auditing, although it still requires human supervision. The technology allows for the analysis of millions of transactions, enhancing fraud detection.
Artificial intelligence (AI) is changing the way auditing firms such as KPMG and EY carry out their work. According to expansion.com, AI enables the analysis of millions of transactions more efficiently, facilitating the identification of fraud and errors.
The head of auditing at KPMG in the UK, Catherine Burnet, notes that “technology is transforming the role of auditors, making the work much more interesting.” With the adoption of AI agents, audits become more thorough, which could alleviate the burden on human auditors, especially in a context where EY employs 85,000 auditors and conducts double the annual audits.
However, the use of AI does not exempt firms from their regulatory responsibilities. While technology can classify and filter transactions, critical review remains in human hands. Burnet warns that “AI is here to support us, not to replace us,” and emphasises the need to maintain key auditing skills among industry professionals.
Furthermore, the Financial Reporting Council in the UK highlights that the goal should be to improve audit quality, not simply to reduce costs. Despite the advantages offered by AI, there is a risk of becoming overly reliant on it, which could lead to undetected errors in audits if not managed properly.
With the continuous advancement of AI, it is crucial for firms to maintain a balance between technology and human oversight to ensure the integrity of the auditing process.
You may also like
