Tool Used

ChatGPT Plus (4o) by OpenAI.

Use Case Link - https://www.youtube.com/watch?v=N9E5xeR4WXc

Step-by-step Procedure to follow my Use Case:

1. Upload the Governance Framework Document: Start by uploading the document/report from management that contains details about the company's policies, procedures, and governance framework.

1. Analyze the Report: Use ChatGPT Plus (4o) to analyse the uploaded document. The AI tool examines various components of the governance framework, such as policies, procedures, internal controls, risk management strategies, and compliance mechanisms.

1. Generate an Audit Checklist: Based on the analysis, instruct ChatGPT Plus (4o) to generate a comprehensive audit checklist. This checklist includes key areas to be reviewed, specific items for verification, and relevant questions.

1. Detailed Queries and Clarifications: For more detailed information on any item in the checklist, ask specific queries to ChatGPT Plus (4o). The AI provides detailed responses, ensuring thorough understanding and review of each item.

1. Incorporate Findings into the Audit Report: After completing the audit, use ChatGPT Plus (4o) to assist in drafting the audit report. The AI can summarize findings and draft detailed sections, which can then be modified to meet specific reporting requirements.

Importance of the Topic:

Auditing is a critical function that ensures transparency, accuracy, and compliance in financial reporting. The integration of AI into auditing processes addresses common challenges such as time constraints, human errors, and the need for extensive data analysis. By leveraging AI, auditors can enhance their efficiency, accuracy, and depth of analysis, providing greater value to their clients and stakeholders.

Impact of AI on the Use Case:

AI, specifically ChatGPT Plus (4o), significantly impacts the auditing process by-

1. Reducing Time and Effort: Automates routine tasks, allowing auditors to focus on more complex issues.

1. Improving Accuracy: Minimizes human errors and ensures consistent analysis.

1. Enhancing Data Analysis: Provides deeper insights through advanced data analysis capabilities.

1. Streamlining Reporting: Assists in drafting detailed and accurate audit reports.

Alternate AI Tools for the Use Case

Apart from using ChatGPT Plus (4o) for this kind of use case, users can also use Claude- AI by Anthropic, Perplexity and up to certain extent like Google Gemini (for tasks like Generating Audit Checklists and other language based tasks).

Conclusion

The integration of AI into auditing is a transformative step that enhances the quality and comprehensiveness of audits. Tools like ChatGPT Plus (4o) offer significant benefits, from reducing time and effort to improving accuracy and data analysis capabilities. By adopting AI, CAs can perform more efficient, accurate, and insightful audits, ultimately providing greater value to their work.