Over the past year there has been a significant advancement in the general availability of applications incorporating artificial intelligence, many of which could be used by auditors and management of Canadian reporting issuers. While the potential of these technological advancements to improve the effectiveness and efficiency of the audit is significant, it also creates risks that must be effectively managed. Before audit firms and audit engagement teams use these applications, it is essential that audit firms adopt appropriate safeguards to manage any risks to audit quality in the same fashion that these risks are managed with automated tools and techniques currently used in audits.
