Silicon Collar looks at machines and humans at work in over 50 settings across industries and countries. On this blog I will excerpt many of those settings over the next few weeks. On Deal Architect I will excerpt more of the policy parts of the book.
“Shaun Budnik is the Audit Innovation leader at another large firm, KPMG LLP (KPMG). Her group brings together the technologies, analytic techniques and processes to develop "audit and assurance services of the future." Prior to this, she played a similar role at Deloitte and also focused on educational programming that has had a significant impact on the profession.
KPMG recently announced an agreement with IBM, allowing it to apply IBM’s Watson cognitive computing technology to many of KPMG’s services. Even though financial reporting is about numbers, audits tend to involve scores of judgment calls about internal controls, reviews of contracts, accuracy of statements and other risk-based assessments. “”
There is another debate in this profession which has historically used sophisticated sampling in its reviews. Said Budnik, "I think the regulators will need to ask, ‘Does the fact that technology provides us with more things to audit mean we have to audit them?’ Is there an expectation that because we can now audit 100% that we should audit 100%?"
That is prompting debates about "continuous audits." According to Budnik, "When you start bringing in lightning-fast, in-memory technologies, can you have them do those judgment-based tasks on a more frequent basis, maybe even daily? If you're looking at contracts or loans, every time a loan is generated in a bank, can you have that loan go through the cognitive process of being reviewed, inspected, and analyzed?"”
Photo of KPMG Insight Lab in Hong Kong