The Strategist

EY notes progress in the use of AI in auditing

12/05/2023 - 02:28

Other Big 4 international auditors are not very optimistic.

Ecole polytechnique
Ecole polytechnique
According to the Financial Times, EY, one of the "Big Four" international auditors, has tested an artificial intelligence (AI) system designed to identify fraud on some of its clients' accounts and has found encouraging results.

According to Kathryn Barrow, managing partner at EY UK and Ireland, the AI system found suspicious conduct in two out of the ten organizations it examined. Clients of EY later verified that fraud had in fact happened in both situations.

According to several industry experts, AI technologies have a lot of potential to enhance audit quality and lighten the strain of staff members. Experts believe that neural networks could be a potent new tool for warning auditors about anomalies and other issues because of their capacity to process and analyze vast amounts of data.

Auditors disagree, meanwhile, over the extent to which they can rely on a technology that is frequently misunderstood and has not yet undergone extensive testing.