All Things Internal Audit AI Podcast: Generative AI Uses for Internal Audit

Summary

In this episode of the All Things Internal Audit AI podcast, Sue King from KPMG and Grant Osler from Worka explore the impact of generative AI on internal audit processes. They discuss best practices for using AI, including specificity in prompts and leveraging AI for risk assessment, report generation, and root cause analysis. The conversation highlights AI's potential to enhance audit efficiency, shift from assurance to advisory roles, and contribute to more impactful and value-added auditing practices.

Takeaways

• 📝 Generative AI can significantly speed up internal audit processes and enhance risk management in evolving areas.
• 🔍 The more specific and contextual the prompts given to AI tools, the better the results they produce.
• 💡 Practicing and experimenting with different prompts can help fine-tune the AI's responses and improve its accuracy.
• 📚 AI can be used to assist in planning audits, identifying risks, and suggesting controls and procedures.
• ✍️ AI excels in drafting reports, allowing auditors to focus on higher-value tasks rather than spending time on report writing.
• 🔑 With minimal data entry, AI can generate detailed recommendations and action-oriented insights, enhancing audit value.
• 🔍 AI can ingest various document formats for analysis, enabling auditors to perform testing procedures more efficiently.
• 🛠️ Auditors can use AI for root cause analysis and to provide actionable recommendations to control owners.
• 🚀 AI can help auditors transition from assurance to advisory roles, amplifying their impact on improving operations and reducing risk.
• 🌐 AI platforms can be connected to enterprise systems via APIs, allowing for real-time monitoring and data analysis.
• 🔮 The future of internal audit with AI is expected to focus on value-added services, root cause analysis, and improved risk management.

Q & A

What is the main topic of the podcast episode?

The main topic of the podcast episode is the potential of generative AI to speed up internal audit processes and support risk management in evolving risk areas.

What is the importance of specificity when entering prompts into generative AI tools?

The more specific you can be when entering prompts, the better the results you will get from the AI. It allows for more accurate and contextually relevant outputs.

How can generative AI assist in the auditing process?

Generative AI can assist in the auditing process by speeding up report writing, helping with risk analysis, and providing recommendations for control improvements.

What is one way generative AI can help with data entry in auditing?

Generative AI can take in documents in various formats like Excel or PDF, and perform tasks such as comparing and contrasting data, which reduces the amount of manual data entry required.

How does generative AI support risk management in internal audits?

Generative AI supports risk management by identifying potential risks in specific areas, suggesting important controls, and helping auditors understand how these risks might manifest.

What is the role of generative AI in report writing for internal audits?

Generative AI can write initial drafts of reports, which auditors can then refine. This helps to save time and allows auditors to focus on more value-added tasks.

Can generative AI generate work programs for auditors?

Yes, generative AI can generate work programs, helping auditors to plan and structure their testing procedures more efficiently.

How can generative AI be used for root cause analysis in auditing?

Generative AI can analyze data and provide insights into the root causes of issues, allowing auditors to offer more targeted and actionable recommendations.

What are some creative uses of AI by auditors mentioned in the podcast?

Some creative uses include using AI to document walkthroughs, compare process narratives to actual processes, and quickly identify differences and areas for improvement.

How does generative AI impact the role of auditors in terms of value addition?

Generative AI allows auditors to focus more on value-added activities such as advisory services, control improvement suggestions, and strategic planning, rather than getting bogged down in data entry and report drafting.

What is the potential future of internal audit's use of AI according to the podcast?

The future of internal audit's use of AI could involve more automation, continuous monitoring, and a greater focus on value-added services, with AI serving as a tool to enhance auditors' impact and efficiency.

How can generative AI help with the governance and control of AI usage in other departments?

Generative AI can help auditors understand the governance and control mechanisms over AI usage in other departments, ensuring that there are proper guardrails in place and that the usage is aligned with company policies.

What are some challenges auditors face when writing business cases and recommendations?

One of the challenges auditors face is making the business case and recommendations compelling and actionable. Generative AI can assist in crafting these in a more effective and persuasive tone.