The Impact of AI on Audit Accounting Jobs in Financial Organizations

The rise of Artificial Intelligence (AI) in financial reporting and audit accounting is a transformative force, one that prompts both enthusiasm for its potential benefits and concern for its implications on the workforce. To understand the ramifications of AI on audit accounting jobs, it is essential to ask the following pertinent questions:

• How is AI being integrated into financial reporting and audit processes?
• What are the perceived benefits and risks associated with AI in audit accounting?
• To what extent do financial organizations expect auditors to evaluate the use of AI?
• What strategic actions are companies taking in response to AI advancements?

Drawing from the researched data, the following points encapsulate the current impact of AI in audit accounting:

• Adoption Rates: Nearly 72% of companies are piloting or using AI in financial reporting, with the telecoms and technology sector leading at 41%, followed by energy, natural resources, and chemicals at 35% (Deloitte ; KPMG ).
• Expectations from Auditors: 64% of companies surveyed expect auditors to have a role in evaluating their use of AI in financial reporting, with 29% anticipating third-party attestation and 36% expecting detailed reviews of control environments (KPMG ).
• Strategic Board Actions: All companies indicated that their boards have taken strategic action regarding the use of AI (KPMG ).
• GenAI Solutions: Half of the finance executives surveyed from companies with annual revenues of $1 billion or more have either deployed or piloted GenAI solutions for financial reporting functions (Journal of Accountancy ).

We can note that the integration of AI into audit accounting is not merely a technological upgrade but a paradigm shift. AI's capabilities in planning, research, and product development are enhancing the efficiency and quality of financial reporting.

However, the notion that AI will replace human judgment is a misconception; instead, AI serves as an enabler, augmenting professional expertise (Deloitte ).

The data indicates a growing reliance on AI, with a significant proportion of companies actively exploring or implementing AI solutions. This trend suggests that AI is not on the fringe but is becoming a central component of financial reporting processes. Furthermore, the expectation that auditors will play a pivotal role in evaluating the use of AI underscores the need for audit professionals to adapt and develop competencies in AI oversight.

Based on the information provided, it is my opinion that AI, particularly GenAI, is poised to significantly enhance audit accounting jobs rather than diminish them. The technology's ability to handle routine tasks frees up auditors to focus on more complex and strategic aspects of their work.

Moreover, the demand for auditors to evaluate AI use in financial reporting signifies an expansion of their role, rather than a contraction.

However, this optimistic outlook is contingent upon auditors' willingness to engage with and understand AI technologies. As AI becomes more pervasive, auditors who embrace these tools and the requisite skills will likely find themselves at an advantage, both in terms of job security and professional development.

In conclusion, AI's imprint on audit accounting jobs is multifaceted, offering both opportunities for professional growth and challenges in skill adaptation. The data and trends indicate a future where AI and human expertise coalesce to elevate the practice of audit accounting. As organizations and their boards take strategic action to harness the potential of AI, it is incumbent upon audit professionals to evolve alongside these technological advancements.

About Samik Roy

Samik has 18 years of experience in recruiting Accountants, both qualified by experience (QBE) and with typical qualifications such as ACCA, ICAEW, CA Scotland, CA Ireland, or equivalent. These Accountants work in various types of accountancy firms, ranging from independent practices to Top-50 and Big-4 firms, both within London and nationally.

The recruitment areas Samik covers include audit (external, internal and IT), accounts/business services, and general bookkeeping. The typical positions he recruits for are Audit Senior, Audit Assistant Manager, Audit Manager, Audit Senior Manager, Audit Associate Director, Audit Director, and Audit Partner.

References:

Deloitte. "Generative AI in Financial Reporting." Deloitte, https://www2.deloitte.com/us/en/blog/accounting-finance-blog/2024/generative-ai-in-financial-reporting.html .

KPMG. "AI in Financial Reporting and Audit Web." KPMG, https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2024/04/ai-in-financial-reporting-and-audit-web.pdf .

KPMG. "AI in Financial Reporting and Audit." KPMG, https://kpmg.com/xx/en/home/insights/2024/04/ai-in-financial-reporting-and-audit.html .

Deloitte. "AI in Finance and Accounting." Deloitte, https://www2.deloitte.com/us/en/pages/audit/articles/ai-in-finance-and-accounting.html .

Forbes. "The Dawn of a New Era: AI's Revolutionary Role in Accounting." Forbes, https://www.forbes.com/sites/neilsahota/2024/04/22/the-dawn-of-a-new-era-ais-revolutionary-role-in-accounting/ .

KPMG. "AI in Financial Reporting and Audit: Navigating the New Era." KPMG, https://kpmg.com/ca/en/home/insights/2024/05/ai-in-financial-reporting-and-audit.html .

Journal of Accountancy. "Generative AI Revolution: How Auditors Are Leading the Way." Journal of Accountancy, https://www.journalofaccountancy.com/news/2023/nov/generative-ai-revolution-how-auditors-are-leading-the-way.html .

IMA. "IMA Publishes Report on the Global Impact of AI on Accounting and Finance Professionals." IMA, https://www.imanet.org/press-releases/2024/01/ima-publishes-report-on-the-global-impact-of-ai-on-accounting-and-finance-professionals .