Quick Identification of Early Risk Factors for Efficient Auditing
"Improving Audit Quality and Service through AI"
Comprehensive accounting and consulting firm KPMG announced on the 7th that it has introduced generative artificial intelligence (AI) features to its smart audit platform, "KPMG Clara." KPMG plans to leverage AI capabilities to enhance efficiency across the entire audit process, including ▲risk assessment ▲performance of substantive procedures ▲preparation of audit documentation.
The AI integrated into Clara reviews large volumes of documents at high speed and identifies initial risk factors. Additionally, the AI learns KPMG's audit methodology to assist auditors in designing and executing audit procedures tailored to each company. Features that summarize documentation and suggest improvements have also been introduced, which are expected to significantly reduce auditors' time spent on preparing audit working papers.
The generative AI features, which will be applied progressively, were also unveiled. Based on the same technology as Chat GPT, it serves auditors directly like a virtual assistant. It provides clear and rapid answers to complex questions regarding KPMG's audit guidelines and directly offers links to source materials. As a core element of the strategy to embed AI into KPMG audits, it can also be used for various activities that improve productivity and enhance quality.
It also includes a function that quantifies and evaluates all transactions of a company. By combining KPMG's machine learning algorithms with statistical scenario techniques, it analyzes each transaction of a company and presents the level of risk. Auditors can focus their audits on high-risk transactions reviewed by AI and gain quick insights into the client's situation.
Byun Young-hoon, Head of the Audit Division at Samjong KPMG, stated, "AI practically supports the role of auditors and represents a paradigm shift that restructures the entire accounting industry. Through the introduction of generative AI features in KPMG Clara, auditors will be able to focus more on high-risk audit areas and industry-specific risks and challenges, providing clients with deeper and more insightful accounting audits."
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