Transformation in Internal Audit with AI

Created By : Vincy Panjwani

Internal audit is undertaken to gauge a company's governance along with its risk management and control processes, and it plays a significant role in advising on improvement areas to make the businesses more compliant and efficient.

However, conducting an internal audit adopting traditional methods involves extensive manual data collection and data analysis, making it altogether a cumbersome and tiresome process to get to the desired outcome. It is a time-consuming task and prone to human error, thereby not resulting in actional insights in real time. Today, businesses expect more from internal audits – it is no longer just about identifying gaps and performing basic routine tasks. Instead, clients are keen to know the corrective plan of action for the gaps identified and how the internal audit firms can add value to their business operations.

So, how do we ensure this value-addition?

Enter AI: The Game Changer for Internal Audit

Artificial Intelligence (AI) is transforming a wide range of services, and internal audit is no exception. Integrating AI in the internal audit landscape brings significant benefits to businesses, as mentioned below:

1. Improved Accuracy in Risk Identification

AI tools can assess large volumes of data by analysing them with precision, identifying potential risks more quickly, and reducing the risk of human error. This ensures a comprehensive and error-free identification of the gaps and enables businesses to find ways to mitigate them.

2. Enhanced Efficiency in the Audit Process

Unlike traditional internal audit processes, which require auditors to manually analyse large volumes of data, AI enables the processing of millions of operations with just a click of a button, automating repetitive tasks. This saves auditors significant time, allowing them to focus on high-value activities, such as formulating strategies and implementing corrective measures.

3. Advance Data Analysis

AI brings the power of advanced data analytics such as complex trend analysis and forecasting, and better data visualisation via automated and customizable dashboards. These real-time insights enable the management to proactively address the issues and suggest forward-thinking strategies for risk mitigation.

Are you ready to transform your decision making with AI-integrated internal audit process? Contact us now

AI in Action: The Introduction of Microsoft Copilot

Imagine how much more effective your audit process could be if you had the power of AI at your fingertips. Would you embrace this transformation in your audit process?

AI revolution has taken over the world and one of the most exciting developments in this space happened when Microsoft rolled out ‘Copilot AI’. This AI-powered tool integrates seamlessly with Microsoft Office applications like Outlook, Teams, Excel, Word, etc. and all you need to do is to enter a command to get a prompt response. Leveraging powerful algorithms and machine learning models, Copilot brings in automation to the tasks that were previous done manually – saving time and minimizing errors.

Here's how Copilot can enhance internal audits:

• Analyse large data sets by identifying trends, patterns, etc. and share insights from analysis performed.
• Detect fraudulent activities by identifying any unusual transaction or patterns in the data provided and indicating any suspicious activity.
• Automate complex calculations like depreciation, amortisation, interest calculation, etc. with greater accuracy by reducing the chances of mistakes and eventually saving time.
• Generate professional reports from the data including charts, tables, summaries, visualisations, etc. that is more effective and appealing.

The Road Ahead: AI and the Future of Internal Audit

As business requirements evolve, the tools and techniques that are used in their effective functioning also need to adapt to this technological revolution. Integrating AI is not a passing fad, but a changing approach to internal audit because it could unlock pathways to better accuracy, efficiency, and decision-making. At AKM Global, we believe in staying up to date with the growing innovation that brings positive changes for businesses. AI is paving the way in which we approach internal audits, ensuring that we not only meet the needs of our clients but also exceed their expectations through value-addition.

What challenges do you think AI could address in your audit process? Share your thoughts with us at info@akmglobal.com.