CAQ Releases Publication on Auditing in the Age of Generative AI

The CAQ has released a publication Auditing in the Age of Generative AI, which explores the audit implications of risks associated with the use of generative artificial intelligence (AI) in financial reporting processes and internal control over financial reporting (ICFR). In addition to summarizing important aspects of generative AI technology and explaining how companies are implementing it, the publication discusses government regulations that may affect generative AI, outlines specific risk areas for auditors to consider, and includes a couple of hypothetical scenarios illustrating how an entity might perform risk assessments related to the use of such technology.