Center for Audit Quality Releases Tool on Oversight of Emerging Technologies

“Audit committees should engage with management to determine whether endeavors in emerging technologies are aligned with the company’s emerging technology strategy regarding financial reporting,” says a report from the Center for Audit Quality, which has developed a tool to help audit committees execute their oversight responsibilities for financial reporting affected by artificial intelligence, robotic process automation and other emerging technologies. The tool provides a framework for conducting effective oversight of a company’s use of emerging technologies in the financial reporting process within five frameworks: Control Environment; Risk Assessment; Control Activities; Information and Communication and Monitoring. The tool also includes questions within each of the five components that audit committees may ask management and auditors to help inform their oversight of financial reporting.