ICAI plans to use AI to identify non-compliances in financial statements
Chartered accountants’ apex body ICAI is planning to use artificial intelligence to identify non-compliances with respect to financial statements as part of efforts to boost its review process.
The Institute of Chartered Accountants of India (ICAI) through its Financial Review Reporting Board (FRRB) is gearing up for another technological advancement by way of utilising Artificial Intelligence (AI).
“The proposed system will have capability of AI/analytics so that common non-compliance can be flagged using system AI on the basis of XBRL financial statements of the enterprise,” the ICAI said in a release on Friday.
According to the release, such a system will enable the automation of workflow of FRRB between various review levels as well as maintain repository of non-compliances observed by the board.
The system will also help in scaling up the number of cases being undertaken for review as well as in strengthening financial reporting practices in India, it added.
The FRRB, constituted in July 2002, seeks to improve financial reporting practices and quality of audit by chartered accountants.