Using AI in finalizing Internal Audit Assignment

Problem Statement:-

Practicing Chartered Accountant based at Agra, started his CA practice , from his references he got a call for initial meeting at ABC Ltd for executing the Internal audit of that company, the company was deals in leather processing and manufacturing. The meeting was scheduled on next day at 11 AM now the CA has to make the presentation for that meeting and have to discuss the areas to be covered during the internal audit. The main challenge for the CA was that he has done internal audit for electronic industry and does not have any experience of leather industry audit.

Solution:- The CA used CA-GPT specifically industry specific GPT- “ICAI Leather Industry AI Analyst” for understanding the entity’s specific risk with associated controls to be implemented and based on the content available with CA-GPT, he draft the prompt for PPT to be prepared by Gamma ai and draft the engagement letter and Internal Audit report format.

Prompt 1 :-

"As a CA, I got a call for an initial meeting to execute the internal audit of a leather industry company with a turnover of up to 50 crore. Kindly suggest what areas are to be discussed in that meeting so that I can secure the internal audit assignment.".

Prompt 2 :-

"OK, now give the leather industry-specific risks with associated controls to be implemented. The company deals in processing crust leather and raw leather and processes them to produce final leather."

Prompt 3:-

"The company deals in exports as well. Kindly provide the above information in tabular form. In addition, provide the risk matrix so I can discuss it with the client and close the meeting, ensuring that no legal compliance is left out, as the company is registered in Uttar Pradesh."

Prompt 4 :-

"Create a prompt for Gamma AI so that I can prepare a PPT for discussing the internal audit assignment with industry-specific information." This provides the slide-by-slide content for preparing the presentation

Once the meeting executed and we get the assignment of Internal audit now the CA need to draft engagement letter, the audit checklist and the draft Internal Audit Report format

Prompt 5:-

"We have been appointed as the internal auditors of a leather manufacturing company. Draft the engagement letter for the same (Ethical Standards Board GPT of CA-GPT)."

Prompt 6:- "Draft the internal audit report and, in addition, provide AI-driven solutions in tabular format for real-time inventory tracking, predictive analytics for production optimization, automated compliance monitoring (GST, environmental, labor laws), and intelligent forecasting for export receivables. AI tools can analyze historical data to predict wastage patterns, optimize procurement cycles, detect potential compliance breaches, and automate document management for exports, thus minimizing human errors and enhancing overall operational efficiency."