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AI and Audit

15 April 2018

Is it possible to delegate audit
work to machines? How many years down the line can we see computers performing 100% audit and giving full assurance not reasonable assurance within limited time.

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2 Replies

Prashant Rajput (An insatiable Learner) (889 Points)
Replied 22 April 2018

More than AI, Chartered accountants should worry from block chain technology which can analyze,input and audit financial data on its own.I have read a host of articles regarding Accounting profession and emerging technologies.There are two schools of thought: One is accountants will no longer be needed for auditing as block chain becomes more integrated into the Accounting profession.Second is machines can't give judgements,so human touch will always be there.Time will tell what becomes of auditing in 5 to 10 years time.Your questions answer not beyond 2027. But two things are certain: 1) AI will allow evaluation of 100% transactions so the concept of sampling will become redundant 2) Very few number of people will be required for Auditing purpose.In other words,many Accounting jobs will be lost.

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Prashant Rajput (An insatiable Learner) (889 Points)
Replied 22 April 2018

Apart from AI,Accountants should also worry about Block chain.I've read hundreds of articles regarding Accounting Profession and Emerging technologies.Coming to your question,is it possible to delegate audit work to machines? No one can say certainly. There are two schools of thought: First,blockchain will input,analyze and audit financial data on its own rendering accountants redundant. Second,Machines are not good with judgements.So there will always be human touch in auditing.Some are saying Accountants will have to embrace AI to audit transactions.Those who don't embrace AI will have to leave auditing profession.So there is hope that auditing will survive this technological disruption but not everybody in it. Coming to next question,how many years? 5 yrs max 10 yrs not beyond 2027. But two things are for sure: 1)AI will enable evaluation of 100% transactions,so the concept of sampling will be extinct 2)Very few people will be employed in Auditing in the future.So many Accounting jobs will be lost.