The success stories of large business organizations do not happen in a day but are the results of optimized management of business operations, HR practices, robust internal auditing practices, and much more. Among the essentials for a successful organization, internal auditing plays a vital role as it gives the in and out conditions of the business, like profitability, operation constraints, decision making, opportunities, and similar traits. Expert and experienced internal auditors handle such organizations to give fruitful results to the management. But there is always a scope of human error which may creep into internal audit reports and even a small, missed opportunity may become fatal for an organization. With the advancement of technology, Artificial Intelligence is finding its way into all aspects of our life and internal auditing is not an exception.
What is AI? Role of AI in Internal Auditing
Artificial Intelligence makes use of machine learning, deep learning, and NLP technologies by which a set of algorithms is formed. This governs all the internal processes of the business, collects all the data, analyses it, and draws patterns to give value-added reports regarding profitability, business constraints, risk assessments, periods of high and low and more. NLP along with other capabilities helps in reading and comprehending vast amounts of texts in loads of documents. These business documents are then classified into different types for data extraction and analysis.
Advantages of Use of AI in Internal Auditing
- Error Free Auditing
- Speeding up the Auditing Process
- Data Collection and Analysis Reports
- Useful Data Insights
- Segregation of Data
- Improved Coverage
- Increased Efficiency
- Aid for Internal Auditors
Challenges at Present to Adopt AI in Internal Auditing
Technology is critical for increasing the productivity and efficiency of the internal audit functions. According to an excerpt from the 2017 International Standards for the Professional Practice of Internal Auditing: “Internal auditors must have sufficient knowledge of key information technology risks and controls and available technology-based audit techniques to perform their assigned work” With reference to the Bryden Report of 2019, there is an increased line of separation among clients and auditors and companies are changing auditors often. So, automating existing data for audit tasks is underway and inevitable.
To Conclude
Internal auditing using AI is the necessity of modern-day organizations and is a must for achieving efficiency in auditing and to get fruitful insights and reports. It will surely help organizations to achieve their full potential in their respective fields.
