Artificial Intelligence for Audit, Forensic Accounting, and Valuation: A Strategic Perspective

Description

Strategically integrate AI into your organization to compete in the tech era The rise of artificial intelligence is nothing short of a technological revolution. AI is poised to completely transform accounting and auditing professions, yet its current application within these areas is limited and fragmented. Existing AI implementations tend to solve very narrow business issues, rather than serving as a powerful tech framework for next-generation accounting. Artificial Intelligence for Audit, Forensic Accounting, and Valuation provides a strategic viewpoint on how AI can be comprehensively integrated within audit management, leading to better automated models, forensic accounting, and beyond. No other book on the market takes such a wide-ranging approach to using AI in audit and accounting. With this guide, you’ll be able to build an innovative, automated accounting strategy, using artificial intelligence as the cornerstone and foundation. This is a must, because AI is quickly growing to be the single competitive factor for audit and accounting firms. With better AI comes better results. If you aren’t integrating AI and automation in the strategic DNA of your business, you’re at risk of being left behind. See how artificial intelligence can form the cornerstone of integrated, automated audit and accounting services Learn how to build AI into your organization to remain competitive in the era of automation Go beyond siloed AI implementations to modernize and deliver results across the organization Understand and overcome the governance and leadership challenges inherent in AI strategy Accounting and auditing firms need a comprehensive framework for intelligent, automation-centric modernization. Artificial Intelligence for Audit, Forensic Accounting, and Valuation delivers just that―a plan to evolve legacy firms by building firmwide AI capabilities. Cover Title Page Copyright Contents Preface Acknowledgments Part I Foundations for AI and Audit Chapter 1 Introduction: Staying Ahead of the Emergent Risk Killer Robots and Audit Building the Audit Function Around AI Staying Ahead of the Emergent Risk The Much‐Needed Evolution of the Audit Firm The Claustrophobic Mini Universe of Audit The Problems with Today's Approach Enabling New Thinking in Audit Reinventing the Legacy Firm The Universe of Accounting The Game Plan References Chapter 2 Fourth Industrial Revolution and Its Impact on Audit Fourth Industrial Revolution How Is the Cognitive Revolution Different from Previous Revolutions? You and the New Era Opportunities and Perils of the Fourth Industrial Revolution Sources of Competitive Advantage in the Fourth Revolution Audit Magnification Automation = 3 As (Audit, Activism, Assurance) References Chapter 3 What Is Artificial Intelligence? A Brief History of AI Launchpad Factors Data Science, Machine Learning, AI, and Everything Else Definition of AI Turing Test Narrow VERSUS General AI View of the Enterprise Toolkit for Intelligent Audit Automation References Chapter 4 Rise of Machine Learning Power of Patterns What Is Machine Learning? Machine Learning Is Really Scientific Process on Steroids The Learning Machine Algorithms Accumulating Experience Techniques of Learning Supervised Learning Unsupervised Learning Reinforcement Learning Chapter 5 Machine Learning Models Features and Targets Model Induction Data Stop and Think! Supervised: Classification with Trees Classification Using Mathematical Functions Supervised: Simple Linear Classifier Supervised: Support Vector Machine Supervised: Naïve Bayes Supervised: Bayesian Belief Networks Supervised: k‐Nearest Neighbor Supervised: Regression Supervised: Multidimensional Regression Unsupervised Neural Networks Preprocessing the Data References Chapter 6 Building an IAA Audit Firm: The Planning Toolkit Why Plan and Design? Studying Agents Conclusion to Part One References Part II Building the Automated Audit Function in the Enterprise Chapter 7 Obtain, Retain, and Preplan with AI Solving the Behavioral Problems in Audit Automated Preplanning Subprocesses Automated Pre‐Engagement Automated Audit Planning Automated Pre‐Engagement Activities and Work Tasks Pre‐Engagement SADAL Examples of Machine Learning to Identify Deception Automated Audit Planning Activities and Work Tasks Automated Audit Planning SADALS Client Business Strategy Agents References Chapter 8 Automated Inherent Risk Assessment Total Audit Risk Inherent Risk Understanding the Business Problem Auditor's Thought Process General Approach for Automation Understanding the Features Used in Various Approaches Account Risk References Chapter 9 Automating Internal Controls Assessment Automating Internal Controls Assessment Automated Control Environment Automated Risk Assessment Control Activities Automated Monitoring Information and Communications Control Risk and Next Steps References Chapter 10 Automated Procedures Accumulating Evidence Beyond Internal Controls Automating Basic Functions Automated Reconciliation Automated Journal Entries Putting It All Together References Chapter 11 Reporting and Post‐Audit Management Audit Opinion Detection Post‐Audit Management Challenges in Achieving the Maturity Building an In‐House Architecture for an Audit Firm (or Internal Audit) A Few Important Things to Consider References Part III Forensic Accounting Automation Chapter 12 Intelligent Automation of Fraud Detection Detecting Fraud Elements of Fraud Domain‐Specific Fraud Detection STOPSCAM Technologies and Models Our Approach References Chapter 13 Forensic Accounting Forensic Accounting Capability Building in Forensic Accounting References Chapter 14 Managing for Value and Valuation Infinity Cycle Infinity Cycle and Financial Fraud Valuation References Chapter 15 Tying It Together and Robots Cycles of Audit Robots: A Review References Part IV Management, Organization, and Governance for AI in Audit Chapter 16 Client Management 3P Model Machine Learning in Sales References Chapter 17 AI Organization and Project Management New Capability Assessment Issues of the New Organization Managing AI Projects Chapter 18 Governance and Ethics Some Obvious Ethical Issues Governance of AI: An Introduction to the Problem Humans and AI AIAI Governance Model Governance Framework Ethics Charter Reference Index EULA