Listen to this articleKPMG, the global audit, tax and advisory firm, has added generative artificial intelligence (AI) into its audit platform, the company announced Monday.
KPMG, which offers its accounting services in 143 countries, including a Long Island office in Melville, is integrating generative AI into its KPMG Clara auditing platform to help its staff of 90,000 audit professionals refine risk assessments, develop testing procedures, and enhance audit documentation, according to a company statement.
“With seamless access to trusted generative AI capabilities within our audit workflow, our 9,000 auditors will be empowered to deliver quality audits,” Scott Flynn, KPMG U.S. vice chair, audit, said in the statement. “KPMG Clara with AI will not only free up resources to spend more time on the areas of highest risk, but will directly help our teams exercise professional skepticism to protect the capital markets.”
According to a recent KPMG survey, 83 percent of financial reporting leaders believe it’s important for auditors to use AI in their analysis, prioritizing risk and anomaly identification, data analysis and quality management, and risk mitigation and real-time auditing. And 97 percent of financial reporting leaders will be either piloting or using generative AI in financial reporting in three years, up from 46 percent today.
“These artificial intelligence capabilities enhance our overall transformation to deliver a better audit experience for our people and the companies we audit,” Flynn said in the statement. “Our AI capabilities will further strengthen our engagement teams to more effectively engage Audit committees and management committees.”
In addition to integrating generative AI into its smart audit platform, KPMG will also be deploying it in its workflow in the coming months. That will include a growing prompt library, automated quality scoring, automating reviews of financial statements and integrating assurance capabilities for disclosures, according to the statement.
“Our Trusted AI framework underpins everything we do with AI in the audit, Thomas Mackenzie, KPMG U.S. and global audit chief technology officer, said in the statement. “All of our auditors are trained on how to effectively use AI with a human-in-the-loop mindset to maintain quality, accuracy and professional skepticism.”