Artificial Intelligence is exposing Employees Reimbursement Frauds
AI abbreviation of Artificial Intelligence is widening its base in the Audit as well. The Speed at which it is spreading its limits is unimaginable. It is big surprise to know that we have an Artificial Intelligence tool for Expense Reimbursement Audits. An US based firm has developed a fully functional Expense Reimbursement tool verified by Algorithms of Artificial Intelligence.
As we know that in large corporations it is difficult to track whether the expense are actually towards the companies benefit or for personal expense. These frauds are naturally difficult to pin point when the company has large employee base.
Scope of existing auditors in Expenses Reimbursements
As an auditor the scope is restricted to the accounting accuracy of the Reimbursement form to the supporting Invoices attached. We cannot expect the auditor to check whether the expense has actually incurred or falsely claimed by the employees. Though it is not impossible, but the amount of time consumed by humans in tracking the events linked with expenses are too high.
Hence the present generation audit focuses only on the arithmetic accuracy.
How AI is replacing auditors
To our surprise or the result was too early the AI tool has actually hit the market and large corporations are saving millions out of it. As per an article in Bloomberg, we can know that the AI tool has saved its clients $40 million.
India is no less than any Foreign Country in AI tools
The article in Bloomberg also says that the Indian Tech Companies like Wipro Ltd have started using AI based fraud recognition system. So we are proud to say that we too are in the race.
How will this effect Auditors and Tax Consultants
Guido van Drunen, a principal in KPMG’s Forensic Advisory Services, believes lower level jobs would disappear as more and more firms will start adopting this technology.
Will AI Completely replace Human Auditors
It is in no way can AI completely replace human auditors for identifying ways employees try to defraud the employers.
About: Founder of Efintech Inc and Vidhyanidhi Consulting labs. We are the next generation Accounting firm, with focus of new technology to be implemented in the Accounting and auditing to bring in transparency and reportability.