Audit firms face increased scrutiny regarding the use of artificial intelligence in their workflows, as existing documentation requirements apply to AI-assisted work. PCAOB inspectors and peer reviewers are likely to ask which tools were approved, what data was input, and who reviewed the outputs. The article notes that 81% of tax and audit professionals use AI frequently, while 35% use unauthorized tools, creating governance risks. Firms can mitigate these risks by maintaining an approved tool list, establishing usage policies, and training staff on proper documentation. Proper documentation must allow reviewers to determine what was done and whether the work is re-performable.
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