Artificial Intelligence Audit Risks Mitigation Update
In a communiqué of 19 September 2024, IRBA brought to the attention of registered auditors and firms some developments in artificial intelligence (AI) and the potential implications for the audit profession. The board highlighted the emergence of new and improved AI tools, which have the potential to create more realistic and convincing false evidence or fabricated working papers, and can undermine the integrity and reliability of the audit process, and the financial statements.
Confidentiality is an ongoing concern.
IRBA also addressed and made recommendations regarding other risks, while reiterating the importance of implementing controls and safeguards. The board urged registered auditors and firms to review, and update their policies and procedures to reflect the latest developments in AI, and the associated risks. ISQM 1 requires that firms design and implement additional responses to additional or modified risks.
In addition, IRBA described the change in risk from 2023 to 2024.
To read the full communiqué, visit the IRBA website, on:
For any further queries, please email the Standards Department at standards@irba.co.za