Certain tests and procedures involve activities that can become repetitive and almost boring. Feeding large databases, reconciling figures and accounts, reviewing accounting classifications, and processing inventory figures, for example, are tasks that are normally carried out by young auditors who start at work, but these activities, thanks to AI, can now be done independently and more efficiently.
Additionally, certain repetitive tasks are prone to human error. It’s easy for a person to mistype a number, mistype a column in a spreadsheet, or misprocess a file or database.
Automating these tasks increases the accuracy of reports, while dramatically reducing the amount of time required to compile them. But this does not mean that less experienced auditors should be replaced.
Someone is still required to verify certain characteristics of the data and results, as well as someone who can integrate and analyze the information.
With significant time savings, the best auditing firms in Delhi focus on other, often more creative, and strategic work. Added to this is the opportunity to have more customers.
Typically, the best auditing firms in Delhi are limited in the number of clients they can take on based on the amount of time required to enter data and create reports.
By being more efficient, more clients are served by them, and more time is devoted to each one of them, addressing more strategic concerns such as income and expense levels, trends through periods, improvement of internal control, and suggestions for future actions. This more structural level of service positively improves customer relationships while taking on additional business.
Already in the past, there has been the adoption of new technologies that have contributed to making the work of auditors more efficient. Calculators, computer equipment, cloud services, even drones are technological tools with a positive impact on the execution of audits.
Interaction with people, trust, skepticism, dealing with customers, are not replaceable by a routine or an algorithm. However, automation helps make repetitive work more efficient and frees up time for auditors to better support client organizations with their recommendations.
One of the concerns of some auditors is that their work may be completely replaced by artificial intelligence tools or automated processes. Although AI is being used in almost all industries and some sectors it could lead to a reduction in the number of jobs, for auditors, its impact is beneficial.
AI can be used to collect, aggregate, extract and analyze data related to income and expense accounts or other significant accounts, which are stored in various systems. Algorithms can also check import and export data from embedded systems to quickly identify anomalies.
For example, AI can be used to search and compare the manufacturer’s published list prices of goods with the purchase and sale prices. Similarly, a company’s sales information can be analyzed by applying data mining techniques on social networks or related websites.
As can be seen, automation is not to replace auditors. AI in auditing is designed to be work-friendly.
For the auditor, the nature of their daily tasks may change, and they may be able to do more strategic and creative work, involving more interaction with the client. AI is at the forefront of new technologies for auditing and adopting it gives an edge to the best auditing firms in Delhi.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by
CA Aman Aggarwal
AKGVG & Associates