Audit Transformation 2021 Edition – How will AI change the Audit?

Click to download the research paper.

This report contains an assessment of the potential for applying artificial intelligence (AI) in the audit, and an evaluation of the degree of potential impact on audit clients and auditors.

Artificial intelligence has recently drawn great attention with the development of machine learning (e.g., neural networks) and natural language processing (e.g., question answering systems). However, very few AI applications have reached the stage where they can significantly improve the efficiency of key audit processes. The workload associated with audit procedures continues to increase due to new and evolving requirements and regulations, resulting in a surge in demand for high quality process automation to meet stakeholder expectations. Further, the spread of the COVID-19 pandemic in 2020 and thus far in 2021 has prompted companies to adopt remote working practices, which is expected to accelerate the automation of business processes and the digitization of paper documents and audit evidence. For these reasons, auditors are diligently researching and developing AI tools that can digitize audit procedures.

This report is the second edition of Audit transformation, which was first published in 2018. This report provides more information on the latest knowledge and understanding of potential uses of AI in the accounting and auditing industry.

Genial Technology, Inc. updated the research paper in Japanese together with the AI Audit Research Lab at PricewaterhouseCoopers Aarata LLC in January 2021. Since GenialAI’s primary language is English, we are glad to announce that the translation process has been completed.