Auditing is about establishing the truth about the situation within the company. Which is why AI should never be allowed to be used in the context of auditing. Or at the very least the auditors should never rely on the AI-generated results provided by the company. What's stopping companies from telling AI to generate a set of data that would make them pass an audit, hiding the real facts? Auditors should rely on facts, not confabulations, and should dig as deep as necessary to uncover all the dirt that's hi
These kind of audits are extremely important because they catch shit companies are doing that indicate the company is likely to have economic problems or just flat out go tits up.
So it's not the kind of thing you want to cut corners on. But it's also a lot of work and very expensive so of course you want to cut corners on it.
I suspect sometime in the next 5 to 10 years there will be a big economic crash that we Trace back to AI software used to do audits
There is 0% chance that an AI auditor will blow the whistle on their user misrepresenting reality. For a human auditor uncomfortable with their superior's report, the probability is non-zero, especially if they think someone up the chain will agree with them. It might still be a very low probability, but there exist humans who will complain in some circumstance.
..it should pass on cost savings from the rollout of AI and threatened to find a new accountant if it did not agree to a significant fee reduction..
I estimate KPMG customers pulling this same excuse against KPMG, by the end of this sentence.
Come to think of it, why do we even need human auditors at KPMG again?
Yes, KPMG. Be careful what you fuck others over for. You just might earn it.
Come to think of it, why do we even need KPMG again?
FTFY just a bit.
Auditing is about establishing the truth about the situation within the company. Which is why AI should never be allowed to be used in the context of auditing. Or at the very least the auditors should never rely on the AI-generated results provided by the company. What's stopping companies from telling AI to generate a set of data that would make them pass an audit, hiding the real facts? Auditors should rely on facts, not confabulations, and should dig as deep as necessary to uncover all the dirt that's hi
So it's not the kind of thing you want to cut corners on. But it's also a lot of work and very expensive so of course you want to cut corners on it.
I suspect sometime in the next 5 to 10 years there will be a big economic crash that we Trace back to AI software used to do audits