AI & Data: The key to better audits?

Artificial intelligence (AI) is transforming the way the world looks. From the adverts we see across social media, to research and development conducted by major tech giants, to streamlining recruitment processes, AI is everywhere. There’s no doubt that it’s also revolutionising decision making however, it’s important to note that these tools are only as beneficial as the data they’re provided with. It’s so much more than just a collection of numbers and words. In this article we’ll explore why AI & data are the key to delivering better audits that add value.

It’s the foundation of your entire business, regardless of whether you’re a multinational entity or an owner-managed business. High-quality, secure, and relevant data is essential. Not only for making informed business decisions, but also for ensuring the integrity and transparency of our audit process. How you manage it can be the difference between success and failure.

The Role of Robust Data in Business Decision-Making

The ability to extract accurate, actionable insights from data has become a key competitive advantage. However, this advantage is only realised when the data is not only abundant but also structured and meaningful. It goes beyond raw numbers; it provides clarity, context, and relevance, enabling business leaders to draw accurate conclusions and make informed, strategic decisions.

As auditors, we rely heavily on your company’s data. The completeness and accuracy of this data are paramount. We could use that same data you use for forecasting as the basis for key areas of judgment and estimation, and even more fundamentally, whether your business can continue to trade.

The ability to leverage the best that technology has to offer not only enhances the quality and efficiency of our audit procedures but also enables us to offer deeper insights into your business processes and transaction flows. This, in turn, strengthens our ability to identify potential risks, optimise internal controls, and provide more strategic recommendations for improving your operations.

Compliance doesn’t have to be a burden; it can be a real opportunity to identify and remediate deficiencies.

The Growing Need for Secure Data in an Age of Cyber Risks

Richard Horne, Head of GCHQ’s National Cyber Security Centre, highlighted a “threefold increase in the most serious cyber incidents affecting the UK in the last 12 months”. Cyber attacks are something we’ve already seen this year from big brands such as M&S, Co-Op, Dior, Adidas and The North Face.

From an audit perspective, the security of data is paramount. Throughout the process, we are tasked with assessing whether the financial statements are free from material misstatement due to error or fraud, and we consider the understanding of your IT and cyber risks as part of our risk assessment process. However, this process becomes incredibly challenging if the data provided is vulnerable to risk.

Ask some questions of your IT team:

1. How do you identify and monitor cyber risks?
2. When was the last time we conducted a security assessment?
3. What plan of action is in place if a cyber incident takes place?
4. What’s our response protocol if someone gains access and control of our systems?

As external auditors, we’re asking these questions because they are fundamental to our risk assessment and an area we frequently report back to management on as part of our audit findings report. It should also be essential to you.

How have AAB embraced AI?

Earlier this year, we implemented an AI-powered audit automation platform, to further enhance the quality and efficiency of our audit services. It enables us to extract data automatically and cross-reference it from financial documents, identify potential anomalies in real-time, and accelerate key audit procedures that once took hours, now completing them in minutes.

Audit is a people-first profession, and AI isn’t about replacing that; it’s about empowering it. These tools handle repetitive, time-consuming tasks, allowing our people to focus on where their expertise truly adds value: applying professional judgment, identifying insights, and delivering recommendations that matter. For clients, this means more focused audits, fewer delays, and a better use of your team’s time. Because AI handles the heavy lifting, we can spend more time understanding your business, its risks, and opportunities, making the audit process not just more efficient but also more valuable. 

This isn’t about replacing expertise. It’s about multiplying its impact. The gap between those who embrace it and those who don’t is growing by the day- don’t get left behind.

If you have any queries about how you can better utilise your data or about how AI can be a helpful partner in the Audit process, please do not hesitate to get in contact with Jordan Taylor, or your usual AAB contact.