Thomson Reuters launches new AI-powered audit intelligence suite

Thomson Reuters  has unveiled its new Audit Intelligence suite today (September 12).

Announced from their Toronto headquarters, this new suite of AI-powered, data-driven audit solutions promises to reimagine auditing by significantly enhancing efficiency and accuracy while boosting auditor confidence.

At the heart of this innovation is Audit Intelligence Analyse, the first tool to be released in the suite. Leveraging advanced AI and machine learning technologies, Analyse is designed to simultaneously improve both audit quality and efficiency.

The solution’s primary focus is on high-risk areas, employing intelligent segmentation of audit testing populations based on risk levels. This approach allows for a reduction in the overall number of items that need testing, leading to more streamlined audit processes.

 “Today’s announcement underscores our commitment to investing in and developing products that enable data-driven, AI-powered audits,” said Dave Wyle, General Manager of Audit at Thomson Reuters.

He highlighted the transformative potential of Analyse, noting that it can “cut sample sizes by half, saving valuable time for auditors and their clients.” This efficiency gain not only streamlines the audit process but also allows auditors to dedicate more attention to high-risk areas, thereby improving overall audit quality.

The Audit Intelligence suite is set to expand further in the coming year with the integration of CoCounsel, Thomson Reuters’ professional-grade GenAI assistant. This addition aligns with the company’s broader vision of providing AI assistance to every professional it serves. The integration will enable auditors to leverage CoCounsel alongside Thomson Reuters Guided Assurance, automating the completion of audit program steps and checklists.

Looking ahead, Thomson Reuters has plans to introduce two more tools to the suite. Audit Intelligence Test will automate substantive testing and verification by dynamically tracing accounting transactions to banking activity and supporting documentation. Meanwhile, Audit Intelligence Plan will combine full data populations with technology-driven analytics to enhance auditors’ planning and risk assessment processes.

The benefits of Audit Intelligence Analyse are multifaceted:

1. Increased Efficiency: By automating manual processes, the tool allows for smaller, risk-focused samples. This not only enhances efficiency but also reduces overall firm risk while improving audit quality. Time savings are substantial, ranging from 30 minutes to two hours in both client data provision and auditor sample selection and documentation.
2. Enhanced Accuracy: The automated analysis, powered by AI and machine learning, significantly increases confidence in audit results. Importantly, this integration is seamless, fitting into existing audit processes without necessitating new methodologies.
3. Improved Transparency: The solution offers full configurability, providing a clear and transparent process for selecting and understanding advanced risk identification techniques.

The rollout of Audit Intelligence Analyse is strategically phased. Currently available as part of an early adopter program, it is slated for debut in the United States in autumn 2024, with a UK launch following in 2025. The solution is designed for versatility, integrated into both Thomson Reuters Cloud Audit Suite and directly into audit methodologies and workflows. It can also function as a standalone tool for firms with proprietary methodologies.

The potential time savings from AI-powered tools like Audit Intelligence are substantial. According to the Thomson Reuters 2024 Future of Professionals report, respondents anticipate AI freeing up four hours per week in the coming year, with this figure rising to five hours for tax and audit professionals specifically.

Real-world impact is already evident. Austin Seale, CPA from Indiana-based RBSK Partners PC, which participated in the Audit Intelligence beta program, shared their experience.

“Our firm can definitely see how AI will increase our efficiency. When using Analyse, I would say time savings was probably the number one thing. Not only did we save 20-30 minutes just selecting the sample, but the sample size was cut in half, which reduced testing time, and client data gathering time, by half as well. And this is just for receivables,” he said.

Underpinning the Audit Intelligence suite is a strategic partnership between Thomson Reuters and Validis, an on-demand accounting data provider. This collaboration integrates Validis’ data ingestion capabilities directly into the Audit Intelligence suite, enabling seamless client data ingestion to automate various audit steps. These include trial balance, general ledger and subledger detail import and coding, risk analysis for optimized sample selection, and testing of details.