The document outlines a webinar by Deniz Appelbaum on utilizing AI applications to enhance auditing processes. It highlights the offerings of AuditNet, including templates, webinars, and CPE credits, and covers various AI concepts relevant to auditing, such as machine learning and robotic process automation. Key takeaways include the benefits of AI in improving efficiency and accuracy in audits, alongside practical tips for implementation.

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How to Use AI Apps
to Unleash the Power
of Your Audit
Program!
Deniz Appelbaum, MBA, Ph.D.
Montclair State University, NJ, USA
 President and Founder of AuditNet®, the global
resource for auditors (available on iOS, Android and
Windows devices)
 Auditor, Web Site Guru
 Internet for Auditors Pioneer
 IIA Bradford Cadmus Memorial Award Recipient
 Local Government Auditor’s Lifetime Award
 Author of “The Auditor’s Guide to Internet Resources”
2nd Edition
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About AuditNet® LLC
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AuditNet®, the global resource for auditors, serves the global audit community as the
primary resource for Web-based auditing content. As the first online audit portal,
AuditNet® has been at the forefront of websites dedicated to promoting the use of audit
technology.
Available on the Web, iPad, iPhone, Windows and Android devices and features:
• Over 3,000 reusable templates, audit programs, questionnaires, and control
matrices
• Webinars focusing on fraud, data analytics, IT audit, and internal audit with
free CPE for subscribers and site license users
• Audit guides, manuals, and books on audit basics and using audit
technology
• LinkedIn networking groups
• Monthly newsletters with expert guest columnists
• Surveys on timely topics for internal auditors
HOUSEKEEPING
This webinar and its material are the property of AuditNet® and its Webinar partners. Unauthorized usage or recording of
this webinar or any of its material is strictly forbidden.
If you logged in with another individual’s confirmation email you will not receive CPE as the confirmation login is linked to
a specific individual
This Webinar is not eligible for viewing in a group setting. You must be logged in with your unique join link.
We are recording the webinar and you will be provided access to that recording after the webinar. Downloading or
otherwise duplicating the webinar recording is expressly prohibited.
You must attend the entire Webinar to receive CPE (no partial CPE will be awarded).
If you meet the criteria for earning CPE you will receive a link via email to download your certificate. The official email for
CPE will be issued via NoReply@gensend.io and it is important to white list this address. It is from this email that your
CPE credit will be sent. There is a processing fee to have your CPE credit regenerated post event.
Submit questions via the chat box on your screen and we will answer them either during or at the conclusion.
You must answer the survey questions after the Webinar or before downloading your certificate.
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IMPORTANT INFORMATION REGARDING CPE!
WEBINAR ATTENDEES - If you attend the entire Webinar, and meet the eligibility criteria, you will receive an
email with the link to download your CPE certificate. The official email for CPE will be issued via
NoReply@gensend.io and it is important to white list this address. It is from this email that your CPE credit will
be sent. There is a processing fee to have your CPE credit regenerated post event.
We cannot manually generate a CPE certificate as these are handled by our 3rd party provider. We highly
recommend that you work with your IT department to identify and correct any email delivery issues prior to
attending the Webinar. Issues would include blocks or spam filters in your email system or a firewall that will
redirect or not allow delivery of this email from Gensend.io
We are not responsible for any connection, audio or other computer related issues. You must have pop-ups
enabled on you computer otherwise you will not be able to answer the polling questions which occur
approximately every 20 minutes. We suggest that if you have any pressing issues to see to that you do so
immediately after a polling question.
The views expressed by the presenters do not necessarily represent the views, positions, or opinions of AuditNet®
LLC. These materials, and the oral presentation accompanying them, are for educational purposes only and do not
constitute accounting or legal advice or create an accountant-client relationship.
While AuditNet® makes every effort to ensure information is accurate and complete, AuditNet® makes no
representations, guarantees, or warranties as to the accuracy or completeness of the information provided via this
presentation. AuditNet® specifically disclaims all liability for any claims or damages that may result from the
information contained in this presentation, including any websites maintained by third parties and linked to the
AuditNet® website.
Any mention of commercial products is for information only; it does not imply recommendation or endorsement by
AuditNet® LLC
DISCLAIMER
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Our Program Today
• Gain a basic introductory understanding of AI in audit
• Understand how AI applications can be used in the
context of auditing
• Learn how to use AI apps in an audit for specific,
achievable, measurable results
AI Market by Industry
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Ratio of Human-Machine Working Hours 2018 vs. 2022
What is AI? Machine Learning? Deep Learning?
AI: Any technique that
enables computers to
mimic human thought -
rules based expert
systems, if-then rules,
manual tasks
Machine Learning: AI
that includes statistical
techniques that enable
computers to improve
with experience
Deep Learning: Subset
of machine learning
that allows software to
TRAIN ITSELF to
perform tasks, by
exposing multilayered
neural networks to vast
amounts of BIG DATA
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Polling Question 1
Speaking of Human intelligence…..
“Intelligence is complicated. It can have many faces like
creativity, solving problems, pattern recognition, classification,
learning, induction, deduction, building analogies, optimization,
surviving in an environment, language processing, intuition,
knowledge and much more. Most, if not all, known aspects of
intelligence can be viewed as goal-driven or, more precisely, as
maximizing some utility function. AI is, therefore, goal-driven
AI.” (Appelbaum et al 2019)
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AI Apps Across the Financial Reporting Process
Collect and synthesize your data
DATA ENRICHMENT
DATA CAPTURE
Modify, rationalize,
normalize your data
DATA VALIDATION
Validate, authenticate your data
PROCESS
Perform the process actions
RECONCILE
Ensure consistency and accuracy
ANALYZE & REPORT
Reliable, accurate, timely
analysis and reporting
Robotic Process Automation
Robotic & Cognitive Process Automation
Real Time Analytics
ARTIFICIAL INTELLIGENCE
Adopted from Automation Anywhere
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Audit Challenge: Augmenting the Audit Process with AI
Real Time
Collaboration
Data Driven
Engagement
AI Infused
Workflows
AI in Audit: Key Drivers
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Polling Question 2
IDEA Analytics
Practice Management
WPOnine
IDEA Online
Engagement (AI-Enhanced)
(e.g. Audit, Business Services, Internal Audit)
Data Services
(e.g. Xtend, Confirm, CRM w/Time)
Understanding
the Entity, Data
and Influencers Additional
Procedures
More Evidence
Regulations
ClientDeliverables
Risks
Evidence
Trial Balance
WorkPapers
Insights
Documentation
Data
Source
Analytics AI BlockChain Third PartyAnalytics
Risks
Evidence
Data-Driven Audit Engagement
AI for Audit Framework
GL & Sub
Ledger
Transactions
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AnalyticsAI brings analytics directly into engagements.
With artificial intelligence-based analysis, AnalyticsAI improves
efficiency, quality, and value by analyzing all data at once.
For every engagement.
Key Features
Simple import &
data mapping
Tailored
transaction analysis
Data validation and
completeness
AI-based testing Powerful insights Configuration
reports
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Automated Risk Based Financial AI Apps
Audit Challenge: Problematic Inventories
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Polling Question 3
E & Y University & Picture Recognition AI Apps for Inventories
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The Drone Picture of BAA: Still a Challenge!
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The Drone Picture of BAA: Still a Challenge!
Audit Challenge: Automating Routine & Manual Tasks
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RPA: An Old Idea, But A New Technology
The Goal of RPA:
To use computer
software to automate
knowledge workers’
tasks that are
repetitive and time
consuming.
The Goal of RPA:
To use computer
software to automate
knowledge workers’
tasks that are
repetitive and time
consuming.
The Features of RPA:
• Use existing
systems
• Automation of
automation
• Can mimic human
behavior
• Noninvasive
The Features of RPA:
• Use existing
systems
• Automation of
automation
• Can mimic human
behavior
• Noninvasive
Appropriate Tasks for Robotic Process Automation
DefinableDefinable StandardizedStandardized Rule-BasedRule-Based
RepetitiveRepetitive
Machine-
readable
inputs
Machine-
readable
inputs
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Polling Question 4
Robotic Process Automation
• RPA makes
possible the
automation that
couldn’t be
realized easily
from using
traditional
automation
methods
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Simple RPA Functions:
• Open, read, and create emails
• Log in to enterprise apps
• Move files and folders
• Copy and paste
• Fill in forms
• Read and write to databases
• Follow decision rules
• Collect statistics
• Extract data from documents
• Make calculations
• Obtain human input via emails and
workflow
• Pull data from the internet
• Keystrokes
Polling Question 4
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RPA versus Excel Macros
Major differences:
• RPA can interact with multiple applications, whereas macros can only
be used in a single software application (e.g., Excel, Access)
• RPA can “sit on top of” (i.e., execute) macros
• RPA can record actions by “observing” the user interface using
computer vision, whereas macros do not have this function
RPA: “Automation of Automation”
RPA can “sit on top of” the existing systems as an overlay
EXISTING IT
SYSTEMS/SOFTWARE/
APPLICATIONS
RPA has potential to achieve streamlined and end-to-end automation
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RPA for Accounts Payable
Obtain PDF Invoices Extract Customer Data
Cutacheck
foravendor
Copy + Paste Check
and Email to Vendor for
Confirmation
An RPA bot can navigate through multiple screens (even taking control
of the mouse and keyboard) to copy and paste everything into its
appropriate documents
It can send the final confirmation email, reducing accountant’s
workload considerably while increasing overall AP cycle times
(name, address, invoice number,
invoice amount)
Resource: Adapted from the Lab Insights
RPA for Accounts Receivable
Open Browser Log into SharePoint
Navigate to
Customer Folder
Separate XML Files
into Another Folder
and Zip It
Upload ZipFolder intoAnother
SharePointAccount
• After RPA automation, the above steps (1-9)
only took a few clicks of a button compared
to the 50+ clicks required before RPA
• It used to take 5-10 minutes to zip and
upload invoices, but now it takes 2 minutes
Resource: Adapted from the Lab Insights
SAP automatically saves
invoices to a specific
network folder,
depending on the
customer
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• Analyze the
workflow
First
• Standardize
and
Optimize
Second • START
SMALL
Third
Important Lessons for RPA Implementation:
Review of Today
About AI:
Attempting to mimic human
thought
Should be Understandable
Can be a Great Audit Tool
About AI Financial Audit
Tools:
Find a Process That Provides
Great ROI
May Involve Data Sources
That Are Not Typical
Monitor Results!
Picture Recognition
Find Problematic Use Cases
Standardize Procedures/Data
Collection
Manually Review Results
RPA as an Audit Tool
Appropriate For Routine
Tasks Across Platforms
Start SMALL
Monitor Results!
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• https://www.caseware.com
/casewareanalytics
• https://www.mindbridge.ai/
• https://countthings.com/
• https://www.thregr.org/~w
avexx/software/clickmaste
r2000/
• https://www.automationan
ywhere.com/
• https://www.uipath.com/
• https://www.blueprism.co
m/
• https://www.workfusion.co
m/
Resources
Polling Question 5
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Thank you!
Deniz Appelbaum, MBA, Ph.D.
appelbaumd@montclair.edu
Special thanks to Abigail Zhang of Rutgers
University and Kevin Simon of CaseWare for
content contribution!
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