Use artificial intelligence to navigate volatile economy, audit body says
Artificial Intelligence (AI) and data analytics tools will play a “key” role in helping auditors navigate the volatile economic conditions the world is facing in the wake of Covid and the war in Ukraine, one of the UK’s largest audit trade bodies has said.
The Chartered Institute of Internal Auditors (CIIA) said auditors should “embrace” data-analytics technology – including artificial intelligence (AI) and machine learning (ML) – to ensure they are able to navigate the volatile conditions currently facing the world.
The audit trade body called on auditors to consider whether they are keeping up with competitors, as it noted 60 per cent of auditors are currently using some form of data analytics tools, while seven per cent are already using AI.
The audit body argued data analytics tools allow for “faster and more incisive insights on fast moving risks” as the world faces “adverse” economic conditions “of a kind not seen for decades.”
CIIA chief executive John Wood, said: “The aftermath of the pandemic, war in Ukraine and now recession has exacerbated a myriad of business-critical risks.”
“Data is key for organisations to navigate more risky times ahead and it is key for the future of internal audit.”
“Understanding what the data shows about risk resilience in today’s complex environment will help ensure organisations’ success. We urge businesses and internal audit to embrace data analytics.”
Richard Chambers, former chief executive of the global IIA, said: “Given the warp speed at which risks can emerge and wreak havoc, embracing data-analytics is non-negotiable for boards and internal audit if they are to stay on top of the multitude of risks that organisations are now wrestling,”
“Data analytics enables faster and higher quality assurance for boards to then act on. In stormy economic times a data-led approach has never been more urgent.”