The PCAOB has released a report on the impact of generative artificial intelligence (AI) on audits.
The report reflects limited outreach to audit firms and companies, revealing that generative AI is primarily used for administrative and research activities.
However, there are potential areas where generative AI can assist with planning and performing audits, such as summarizing accounting policy and legal documents.
The PCAOB report states that auditing standards are not viewed as impediments to the development and use of generative AI.
The report also emphasizes the importance of human involvement in auditing and financial reporting, with generative AI augmenting rather than replacing humans.
The report highlights the need for strong quality controls and professional skepticism when using new tools like AI.