AI is coming for all white-collar roles, and the third line of defence, that is, audit, is just another role that AI will ultimately consume.

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AI is coming for all white-collar roles, and the third line of defence, that is, audit, is just another role that AI will ultimately consume. Albeit the role AI plays in internal and external audit will be shaped by a transformation of the audit process, not a removal of the audit professional.

We can demonstrate that we can reduce the time it takes an auditor to evaluate evidence by upto 80%; remove the need for sample inspection and improve control design and effectiveness testing for assurance and audits across domains such as cybersecurity. At the same time, maintaining compliance with international audit standards. Freeing up what is a very scarce resource to focus on more audits, not less. At a time when the regulatory environment around cybersecurity and AI is increasing, requiring focused attention by the IA community. Supporting boards assure regulatory compliance.

The biggest challenge, however, for IA teams is addressing ‘Hallucinations.’ AI is not yet mature enough to allow IA teams to accept findings without validating model reliability. Once we move AI into a world of ‘Trust’, then the real value that AI brings to the IA process will be realised. Until such time, IA teams must tread carefully.

As the Gartner report articulates

“Enthusiasm for and adoption of AI do not guarantee better results or stronger audit department outcomes,” said Porter. “Progress in realizing the benefits of GenAI are often limited by issues such as poor data quality, lack of technical development skills, and in some cases access to the technology.This is reflected in the low levels of confidence CAEs have in achieving their AI objectives this year.”

Liz Sandwith CFIIA

@Parava Security Solutions

#internalaudit #AI #Ahalucinations

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