One out of three auditors see companies in their industry deploying or planning to deploy artificial intelligence (AI) in financial reporting, the Center for Audit Quality (CAQ) found in a 2023 survey.
The proportion will likely grow as companies explore how AI “can streamline or enhance accounting and financial reporting,” the center said.
Accountants increasingly use generative and other forms of AI to prepare technical accounting memos, smooth routine tasks such as writing Excel formulas or footing financial statements, and analyze large volumes of data for unusual transactions or unauthorized system access.
However, companies that deploy generative AI in financial reporting face 12 audit risks ranging from flaws in governance and compliance to failures in preventing fraud and cyberattacks, the CAQ warns.