Transforming audit with AI and KPMG Clara

The situation:

In today’s rapidly evolving business landscape, organizations face growing complexities in managing financial data, regulatory compliance, and risk detection – also when it comes to their audit. At the same time, AI is transforming the audit process. Thanks to data analysis and an enhanced risk assessment: many business benefits are already emerging in the areas of insight generation, trend and anomaly detection, risk control and data-enabled decision making.

What’s more, 72 percent of companies surveyed are already piloting or using AI in financial reporting and is set to reach 99 percent in three years according to our recent report AI in financial reporting and audit: Navigating the new era , highlighting organizations willingness and readiness to innovate on their reporting and auditing.

The solution:

By combining advanced technology with deep audit expertise, we deliver precision, efficiency and confidence to clients navigating these challenges, making the difference in their ability to adapt and grow while staying compliant. We do so by working through KPMG Clara, our smart audit platform, that enables real-time collaboration between our clients and our audit teams, ensuring transparency and efficiency throughout the audit lifecycle.

We’re taking our own medicine with how we use AI, as we’ve integrated two AI components in KPMG Clara: a data and analytics tool that scans through all transactions – no longer a sample, and an intelligent chatbot (or agent) that reads and reacts to the analyzed data. We’ve collaborated with MindBridge, utilizing its AI capabilities to further enhance the quality and depth of our audits. This partnership empowers us to perform advanced anomaly detection and risk assessment, ensuring accurate and trustworthy financial reporting.

By embracing AI in auditing, we not only streamline operations but also elevate the quality and reliability of financial reporting, fostering greater trust and confidence among stakeholders. With our commitment to innovation, we make the difference for our clients by helping them navigate the complexities of modern business with clarity and assurance.

The benefits:

Better experience: Using AI reduces the sample size needed to be analyzed, improving our clients experience in the process.
Enhanced Accuracy: AI helps us analyze bigger datasets, providing even more precise audit outcomes.
Timely Insights: With AI’s rapid data processing capabilities, our clients receive faster feedback, enabling them to make critical decisions with confidence.
Improved Risk Identification: AI systems can detect anomalies and potential risks early, allowing clients to address issues proactively.

Our clients are not the only ones to feel the difference that AI makes for them. Our auditors, too, are reaping benefits from this technological innovation:

Better working experience: Thanks to the integrated intelligent chatbot, auditors gain on-demand insights about the specific case being worked on
Efficiency Gains: Automating routine tasks with AI allows our auditors to focus on complex judgment areas, enhancing overall audit quality.
Continuous Learning: AI systems evolve by learning from new data patterns, helping auditors stay ahead in a rapidly changing financial landscape.