ICAI mulls to use AI to identify the Non-compliances in Financial Statements

The Institute of Chartered Accountants of India mulls to use AI to identify the Non-compliances in Financial Statements as another milestone towards technological advancement. Read the official announcement below:

Public Relations Committee
The Institute of Chartered Accountants of India
15th January, 2021

ICAI mulls to use AI to identify the Non-compliances in Financial Statements

The Institute of Chartered Accountants of India through its Financial Review Reporting Board (ICAI-FRRB) is gearing up for another milestone towards technological advancement by way of utilising Artificial Intelligence (AI) to systematically identify the non-compliances in financial statements to make the review process more robust.

The proposed system will have capability of Artificial Intelligence/ Analytics so that common non-compliance can be flagged using system AI on the basis of XBRL financial statements of the enterprise. The System will also be having the following features:

• Enable the automation of workflow of FRRB between various review levels.
• Maintain repository of non-compliances observed by the Board, and
• Monitoring of the review work would also be included in the web portal.

The Publications of FRRB, Articles in Journal, Videos and presentations of past events/webcasts, list of forthcoming events of FRRB, Technical Reviewer empanelment form etc. would also be part of such system/portal.

Over the period, it would help to scale up the number of cases being undertaken for review as well as in strengthening financial reporting practices in India which would promote stakeholder’s confidence in audited financial statements.

Financial Reporting Review Board (FRRB) was constituted in July 2002, by the ICAI as its non-standing committees, as a proactive measure to improve the financial reporting practices in the Country and to improve the quality of audit by the Chartered Accountants. The Board comprises of members of the Central Council of the ICAI including the Government of India nominee. The Board also has the representations from the office of the Securities and Exchange Board of India (SEBI), Comptroller and Auditor General of India (C&AG), Insurance Regulatory and Development Authority (IRDA), from time to time.