“AI is the new electricity, and it will transform every industry.” - Andrew Ng, AI scientist and educator
Indian firms rethink internal audits
Corporate India is taking a hard look at how it manages fraud and operational risks as data volumes surge and AI driven systems reshape business processes. This changes the normal rules of the game. Traditional audits depend on sampling and periodic reviews, but they do not suffice for a landscape where risks emerge in real time and operations run on interconnected digital platforms. So a new paradigm shift may be unfolding slowly.
Static audits not good
Auditors note that quarterly or annual reviews often provide hindsight rather than early warning. With companies relying on ERPs, CRMs and cloud systems, risks now evolve too quickly for static checks to detect. This gap has become glaring after rising fraud cases and the rapid digitisation of workflows across sectors.
Shift toward continuous monitoring
Firms and audit partners emphasise that continuous control monitoring is becoming essential. Instead of waiting months for a report, organisations can track key indicators instantly and act fast. Experts compare this shift to moving from an annual health test to a real time fitness tracker. AI tools are helping auditors assess embedded IT controls and large scale data flows more efficiently. At the same time, AI introduces risks such as opaque models, algorithmic bias and data privacy vulnerabilities. Audit teams are evolving to scrutinise technology and ethics alongside financial processes.
Preparing for real time assurance
Consulting firms now face clients with digital roadmaps, AI tools and cybersecurity upgrades. Real time auditing, supported by automation and machine learning, is expected to create feedback loops that help companies detect issues early and strengthen compliance frameworks.Summary
Indian companies are moving from periodic audits to real time, technology supported assurance as fraud risks rise and operations digitise. AI enhances audit reach but also introduces new vulnerabilities, pushing firms to modernise controls and adopt continuous monitoring.
Food for thought
As AI becomes part of every workflow, who should be responsible for auditing the algorithms themselves?
AI concept to learn: Continuous Control Monitoring
Continuous control monitoring uses automated tools to track key business and IT controls in real time. It helps organisations detect anomalies early instead of relying on periodic reports. For beginners, it is a way of understanding how technology can make risk oversight faster and more accurate.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
COMMENTS