AI (Artificial Intelligence) in Auditing

AI allows for the examination of a large amount of data and the detection of outliers or exceptions. Machine learning, for example, can be used to automatically code accounting items. Auditors can increase fraud detection by using advanced machine learning-based models. Deep learning, a type of AI that can evaluate unstructured data like emails, social media postings, and conference call audio files, is likely to further change the audit. Humans can assess a bigger number of contracts, such as leases, in a much quicker timescale using machine learning methods than they can with a standard manual review. In a recent pilot, AI technologies were able to accurately extract information from lease contracts in the vast majority of situations using pre-selected criteria — a higher level of precision than the typical human reviewer.