What’s News?

The application of artificial intelligence (AI) in the accounting and auditing profession is becoming widespread, and its uses manifold. Based on recent research, some audit firms allow their staff to use generative AI (GenAI) tools when preparing certain administrative documents or initial drafts of memos and presentations related to the audit. Other audit firms have started to develop and deploy GenAI-enabled tools to assist staff with researching internal accounting, and auditing guidance.

In the future, GenAI may potentially be used for assisting with summarising accounting policies and legal documents, evaluating the completeness of audit documentation against documentation requirements, evaluating the completeness of financial statement disclosures, and possibly even for certain risk assessment procedures and scoping of the audit.

Despite the many uses and benefits of GenAI, there are also several risks and ethical issues to consider. These include privacy and confidentiality, accuracy of outputs, questions surrounding ownership of intellectual property and plagiarism, and data security breaches. Firms need to develop policies and train staff on the correct use of GenAI, implement rules and limitations on its use, and supervise and monitor how it is used in practice.

It has been noted that some universities embrace the use of GenAI and incorporate it into their methods and processes, while others steer far clear of it, due to the risks and ethical issues involved with the use of GenAI. Not all universities have access to the same level of resources, and are, therefore, not in all circumstances in a position to develop their own GenAI tools for student research and guidance.

To ensure that students are future fit and prepared for the realities of the rapidly evolving work environment, however, it is crucial that the curriculum of universities incorporate the correct use of GenAI and allow for its use under controlled circumstances. Audit firms should further supplement this by addressing the topic in training provided to aspiring professionals. AI is here to stay, and it is up to us to ensure that we are ready for it.