Applying Artificial Intelligence to Audit

Applying Artificial Intelligence to Audit

Logan Hoffert
Applying Artificial Intelligence to Audit

CPAs around the globe are utilizing the capabilities of MindBridge, allowing the Ai Auditor to do the financial data heavy lifting. Crowe MacKay’s in-house MindBridge expert and Partner, Logan Hoffert, explains the benefits and risks of the technology and what it means for our audit clients. 

What Does the Ai Auditor do?

While data analytics have been available for use in audit for some time, adding machine learning to help analyze the data and assess risk is a newer development. In simpler terms, MindBridge is powered by artificial intelligence  (AI), utilizing pre-configured algorithms to examine and compare risks. The software utilizes 100% of the clients data, becoming one of the most powerful tools available in detecting risk, computing results in matter of minutes. Data can be explored with different filters and queries, ultimately, assembling new insights. For example, risk can be assessed by time, account, transaction, user, or vendor filters.

What are the Benefits of Ai Auditing?

  1. Risk Reduction: By reviewing 100% of the transactions and flagging unusual transactions, this improves our ability to detect risky transactions that sampling or manual review would miss.
  2. Increased Efficiency: There is an increased audit efficiency by intelligent data ingestion. By using a risk-stratified approach in sampling, it allows the user to reach the same level of assurance with less effort, or receive a higher level of assurance with the same effort.
  3. Value Add: There is the potential to unlock value for our current clients and current employees. The software analyses the financial data generating insights that allow the firm to identify potential value-add service offerings for the client.

Are There Any Risks to Using the Ai Auditing Software?

One of the greatest concerns is the costs and time to use the software. It takes time to set-up and use the tool, as well as deal with any data import issues. Training and experience help with this, but there is still a learning curve. The software has a fee per engagement, so smaller engagements may not see any benefits. Additionally, the data breach of the third-party hosting the service is something to be mindful of when using this technology. In today’s technological environment, there is always the risk that information can be compromised, or that the tool is depended on too much and critical information is missed.

Who Can Utilize this Technology?

Although it is the CPAs of Crowe MacKay applying this technology, it is our audit clients who require it’s precision. Our clients come from varied organizations, roles, and situations. CFOs, audit committees, company boards, and more can all utilize the value-added that MindBridge technology has to offer.

Logan Hoffert Technology Accounting
Logan Hoffert
Partner, Incorporated