Can Internal Auditors be replaced by Artificial Intelligence?
If you have tried ChatGPT or any other forms of artificial intelligence (AI) like I have, you should be wondering at the back of your mind, if such AI can replace internal auditors (or any other profession for that matter). AI has evolved tremendously through the decades, from sampling sounds and artificially creating orchestral instruments to sampling human responses and still (!) artificially creating human reactions.
Internal auditors provide insights that go beyond the data. We exercise human judgement, interpret with discernment, even using our instincts for that gut feeling or intuitiveness.
Spending time with my stakeholders for example, has given me the impression of three things they Do Not readily share with internal auditors:
- They actually may not understand the lapses in controls and processes.
Some stakeholders who are not that risk-averse sometimes have little clue as to why internal auditors pick on lapses in their controls and process. I try to simplify and explain my audit observations, and enlighten them to the degree that’s just right for each and every one of them. - They cannot see your point of view and often fail to connect the dots.
Stakeholders do not fully understand the purpose behind our audit observations. They are obligated to blindly execute our recommendations without understanding Why. It is like forcing a child not to play with fire, without showing the pain and agony it can cause. - They really want you to observe and experience their organisation culture.
Some stakeholders know they are not processing records or procedures the correct way, due to the unique culture of their organisations. They need that slight workaround to ‘make things work’ and want our help nonetheless to see things through.
These experiences are examples of how I sense the ground, relying on my critical thinking and fine observations.
Internal auditors can utilise AI to provide real-time analysis of financial data and identify potential errors, but it cannot replace the critical thinking and decision-making abilities of a human internal auditor. Not for a while more at least.
Notwithstanding technological advancements that progress at such pace, we still must maintain our effort to always learn, unlearn and relearn. To allow an AI in whatever field to completely take over our human role will be a mistake – it will be like playing with fire, again.
But as adults this time, we all know that fire is a good servant, but a bad master.
Katherine Ang embarked on her internal audit career in 2012 and went on to serve as the first Chairperson of IIA Singapore Young Professionals Working Group for FY2020/2021. She is very passionate about the internal audit profession and is zealous in helping young professionals navigate their career.
The Institute of Internal Auditors Singapore blogs reflect the personal views and opinions of the authors. These views may differ from policies and official statements of The Institute of Internal Auditors Singapore and its committees and from opinions endorsed by the bloggers’ employers.
