MADRID, 18 Feb. (EUROPA PRESS) –
KPMG’s global audit director, Larry Bradley, is aware that advanced technology “is called to transform all companies” and that, in relation to his area of ??work and company analysis, Artificial Intelligence (AI) will “help them find that needle in the haystack” in terms of detecting anomalous behavior in the different data sets by analyzing the transactions carried out.
In an interview for the consulting firm’s ‘Trends’ portal and reported by Europa Press, the veteran executive of the firm, which he joined 40 years ago and through whose hands the review of large multinationals has passed, is categorical when stating that AI “is going to radically transform the audit” and has specified that it will do so by automating procedures, which will “boost quality” in all phases of the process.
“The change is that we stop establishing rules and start looking for exceptions,” highlights Bradley about the incorporation of AI into his division’s work processes, which in turn “will allow professional teams to spend more time on those areas of highest risk of the audit and improve quality through the ability to analyze larger and more complex data sets.
In that sense, Bradley has pointed out that KPMG is already applying the lesson of incorporating AI into its internal ‘KPMG Clara’ platform, which is the one used by “thousands of audit teams globally.”
Furthermore, in a prospective exercise, Bradley says that he “goes further” and bets that, as his clients implement AI in their business models, they will require consulting firms to carry out a specific audit exercise on this technology used to generate your information.
Likewise, the executive has delved into the fact that, on the auditing side, with automation they obtain evidence and proof on a range of transactions and controls, generating greater value in the reports for the board of directors and managers, as well as a more dynamic and interactive approach to the audit process.
“The use of technology is allowing us to analyze big data and detect outliers or inconsistencies more quickly and, thanks to which, companies can leverage audit work more effectively and thus improve risk management and control. internal, as well as the costs,” Bradley said.
On the other hand, Bradley has taken advantage of the interview to highlight that, in the complicated situation that the economy is navigating (geopolitics, low growth, elections in the US, etc.), the auditor’s exercise becomes increasingly relevant to generate the essential trust that facilitates decision-making in the capital markets.
Associated with this, he has valued the professional skepticism and critical mentality of the auditor: “ask whether the key data is consistent with the whole, do not take things literally without justification and take a step back to see the general picture.” “These are fundamental qualities that must be part of the DNA of every auditor.”
However, he has pointed out that they have to operate in a “very strict” regulatory environment that can make it less attractive to attract and maintain talent.
The chief auditor of KPMG has noted that investors have long been demanding that companies disclose ESG information that is more actionable, comparable, reliable and transparent.
“Quality corporate information is the lynchpin of capital markets and allows investors to make informed decisions,” noted Bradley, going on to maintain that ESG information “must be subject to the same quality and rigor as financial information, as it will have an integrated impact on investors’ decisions.
In this sense, it has considered that the need to verify ESG information opens a new avenue of professional opportunities for auditors, while the current gap between financial and non-financial information (which encompasses ESG criteria) will gradually close. although it is also necessary, according to the executive, to adapt and harmonize the regulatory environment to satisfy the demands that investors make of companies.
