Risks of Using AI in Audit Sphere and Their Mitigation

Risks of Using AI in Audit Sphere and Their Mitigation

Nevertheless, AI’s broad use in the audit sphere can also be associated with some risks that should be considered. First of all, employers might be resistant to using this technology to perform their tasks. They might have fears of being replaced by AI, which is one of the popular misbeliefs nowadays (Naqvi, 2020). Moreover, research shows that the unwillingness to use innovative technologies is linked to low computer literacy and awareness about the benefits of this method. Under these conditions, the lack of knowledge about AI can trigger specialists’ dissatisfaction and their desire to use traditional or manual approaches, which are less effective compared to the new ones offered by the AI.

Moreover, the risks of using AI in the audit sphere might involve some ethical issues. The technology enables the analysis of full population data (Dubber & Pasquale, 2021). It might give rise to some privacy issues and claims about the possibility of using AI and machine learning when working with people’s data (Naqvi, 2020). Furthermore, the correct functioning of the technology demands its improved understanding and the stable work of the IT department, which is a central requirement to the successful integration of this innovation in the life of different units. Otherwise, there is an increased risk of mistakes and failures preconditioned by poor alignment and integration (Dubber & Pasquale, 2021). Under these conditions, these risks are vital for considering the establishment of the framework for the increased effectiveness.

The mitigation of these risks is vital for the alignment of the successful work of the unit and the creation of the basis for future evolution. The first strategy is the provision of additional training for specialists to ensure they have an enhanced vision of how the AI can be used in various settings and applied to different environments to ensure better outcomes (Naqvi, 2020). Training will all guarantee that workers will not have resistance towards the use of technologies and possess the right idea of how machine learning and AI should be integrated into the work of their unit. This method will contribute to the boost of performance due to the increased motivation and awareness among the staff.

The Role of AI in Audit Tasks

Planning for Audit Task

Any effective audit process always starts with a well-thought-out audit plan which is vital for attaining success. An auditor is responsible for organizing his/her activities, varying between clients, and establishing risk assessment procedures to ensure positive results (Naqvi, 2020). However, one of the leading audit problems is that plans might have gaps influencing the process and decreasing the chance for success (Naqvi, 2020). The degree of uncertainty and unidentified risks are particular to a certain field and should be viewed as an internal part of the audit process (Naqvi, 2020). Under these conditions, any auditor faces several challenges:

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• The need to reduce unknown risks.
• To consider all blind spots.
• The necessity to confirm initial assessments about the industry (AICPA, 2020).

Today, these goals can be accomplished by using unique AI technologies that are available to auditors.

For instance, using specific machine learning and AI applications, auditors can improve planning for audit tasks. The team can enhance the risk assessment, which is a vital part of planning, by using AI tools, allowing to examine all company’s transaction data and acquire insights (Deloitte, 2018). Furthermore, because of the availability of big data portions and the ability to process it by using the most effective risk assessment techniques, AI helps to identify threat areas that can be previously omitted (Naqvi, 2020). It will lead to improved planning and minimization of the chance for a new audit aimed at correcting mistakes (Deloitte, 2018). Under these conditions, the use of machine learning and AI software becomes an integral part of the modern audit sphere as it helps to develop an effective audit plan that can be used by specialists to acquire desired outcomes and avoid critical mistakes.

Execution for Audit Task

Innovations also accelerate execution activities meaning that the audit sphere benefits from the emergence of new opportunities. For instance, this stage presupposes execution of actual audit work, evaluation of the process and control design, testing methods to outline control effectiveness, and examination of performance. Furthermore, there is a need for discussing items formulated as findings and their incorporation into a single sum