National Auditor's Body Eyeing Development Of AI Tools, Says Chairperson Ajay Pandey

Auditors will soon be backed by artificial intelligence tools at a wider scale to efficiently assess the financial performance of Indian corporates.

Ajay Bhushan Prasad Pandey, chairperson at the National Financial Reporting Authority, said on Wednesday that the auditors’ regulatory authority is focusing on encouraging the development and introduction of AI tools in the audit space.

Across sectors, it is high time to work on a large set of data. And that is why it is important for technocrats and auditors to come together and see what tools can be developed, said Pandey at the Confederation of Indian Industry’s conference on 'Financial Reporting & Governance Framework: Building Trust', in Mumbai.

According to the chairperson, AI can make financial reporting stronger and will help in the better coordination of five lines of defence, including companies, independent directors, auditors, investors and regulatory agencies.

Pandey added that merely developing AI tools is not enough, but making them accessible to as many auditors as possible is as much important. Apart from that, training and skilling of professionals would be required, he said.

For training and skilling, the Institute of Chartered Accountants of India has already started forming a new committee this year to educate aspiring chartered accountants on AI and related tools so that they can discharge their duties in an efficient way, said ICAI President Ranjeet Kumar Agarwal.

“We are the first accounting body in the world to have taken such an initiative,” he added.