Question

You are the auditor for Microsoft who uses artificial intelligence in their business operations. What are the audit risks to your client or employer of using artificial intelligence in their business and what are the benefits to your client or employer of using artificial intelligence ?

Answer 1

AUDIT RISK TO THE CLIENT

1. One of the greatest concern is the cost and time to use the software.

2. It takes time to set up and use the tool, data import issues

3. Economical issues (smaller engagements cannot see any benifits )

4.data breach of thirdparty hosting the service is something to be mindful of when using this technology.

5 Tool is depended on too much and critical information is missed

BENIFITS OF ARTIFICIAL INTELLIGENCE IN AUDITING

1.risk reduction : by reviewing 100% of the transactions and flagging unusal transactions , this improves ability to detect risky transaction that sampling or manual review would miss

2.value add : there is a potential to unlock value for our clients . The software analyses the financial data generating insights that allows the firm to identify the potential value add service offering for the client