Audit committee chairs are treading carefully when implementing artificial intelligence in their workflows.
Processing Content
The Public Company Accounting Oversight Board published today its annual
The report found that while chairs acknowledge the potential of AI to increase efficiency and quality, they are increasingly turning to their auditors to understand its impacts on a company’s financial reporting and controls in order to gauge risk. Chairs are discussing with audit firms the auditor’s use of data analytics, proprietary audit platforms and AI tools.
Cybersecurity remains a consistently cited challenge faced by companies, including data breaches, ransomware attacks and phishing incidents. For many audit committees, these concerns are often the subject of quarterly updates or are the focus of dedicated committees.
“Audit committees play an important role in amplifying the PCAOB’s work to improve audit quality,” PCAOB chairman Demetrios Logothetis said in a statement. “I look forward to increasing our direct engagement with audit committees as the PCAOB pursues new and innovative ways to execute our mission.”
The report also shares audit committee chairs’ insights on relationships between audit committees and audit firms, methods for assessing external auditors, the role that PCAOB inspection reports can play, approving services provided by the audit firm, fraud concerns, quality control and critical audit matters.
Credit: Source link
