Generative AI and the Audit Profession – June 13th, 2023

With generative AI, there is an accelerated question of how generative AI will affect the audit profession and fundamentally change how we assess risk and audit evidence. This conversation was already happening because machine and deep learning solutions for risk assessment were already being developed. 
But now, with generative AI, that conversion has taken another level up in terms of what it really means for the audit profession. What generative AI is doing, in my opinion, is creating a more significant schism between audit standards in the US, Canada and internationally and the practical tools that might be available for auditors to perform “better, more efficient, effective audits.” 
We just had a revision to risk identification and assessment standards in the US and Canada.
Even though the revised standard discusses technology and automated tools and techniques, it does not address how an auditor might be using something like generative AI to generate audit risks for their clients and ask questions about where there could be potential fraud. 
Technology is moving faster than the audit standards can provide guidance. This creates a challenging space where there are tools available that may help our profession, but there is no specific guidance on how they can be used.