Thomson Reuters debuts AI audit suite

Thomson Reuters released a new auditing solution that uses AI to segment audit testing populations, identify anomalies within the set, and generate all required documentation. Called Audit Intelligence Analyze, it is the first in what is promised to be a whole suite of software solutions for auditors called Audit Intelligence. 

Audit Intelligence Analyze uses a combination of generative AI and classic machine learning models to segment testing populations based on risk level, which reduces the overall number of items that need to be tested. It will automatically identify anomalies, especially those often missed by humans; and automatically generate all necessary audit documentation. The tool integrates into existing workflows to do so, so there is no need to develop new methodologies to account for the software. It focuses on transforming efficiency rather than changing the methodology: ingested data flows directly into the workflow, eliminating the need for auditors or their clients to manually format, classify, and import accounting data.

David Wyle, general manager of audit at Thomson Reuters, added in a later email that a common challenge is that auditors often lack the necessary information to evaluate transactions based on these standards. This is because most audit platforms only analyze general ledger transactions, which do not contain the detail required to automate these risk identification techniques.

"The Audit Intelligence suite is unique in that it ingests both general ledger and subledger details. This capability allows it to not only automate standards-based risk identification techniques but also apply AI to identify anomalies that standard methods might miss. Together, these features enable auditors to perform the most comprehensive and automated risk analysis possible," he said.

Thomson Reuters said this solution can save auditors between 30 minutes to two hours in both client data provision and auditor sample selection and documentation. It is fully configurable, which provides transparency for selecting and understanding advanced risk identification techniques. 

The suite comes integrated with business financial solution data provider Validis' own data ingestion capacities. This allows professionals to process client data so they can automate audit steps from within the solution, such as trial balance, general ledger and subledger detail import coding, risk analysis and detail testing.

"We believe Validis provides best-of-breed data ingestion capabilities, and we plan for this to be a long-term partnership," said Wyle in an email. "Partnering with top-tier vendors allows us to deliver data-driven audit solutions to our customers efficiently. Audit Intelligence is a new suite of solutions available from Thomson Reuters under license, separate from our other solutions. Once customers purchase the solution, they will not need a separate license or make additional payments to utilize Validis' capabilities within the Audit Intelligence suite."

The suite will also be integrated with its own generative AI-based CoCounsel product next year as part of the company's broader vision to provide gen AI assistants to every professional it serves. This will give auditors the ability to use CoCounsel alongside Thomson Reuters Guided Assurance to automate completion of audit program steps and checklists. Finally, the solution is also integrated with Thomson Reuters Cloud Audit Suite, but it can also be used as a standalone by firms with their own methodologies. 

Wyle, in a statement, said the new solution will be important for professionals who want to modernize their audit practices to stay competitive. 

"Today's announcement underscores our commitment to investing in and developing products that enable data-driven, AI-powered audits. We aim to provide these solutions swiftly to our customers, maximizing the benefit of AI in their audits, while supporting firms to implement solutions at a pace that works for businesses. Our new solution, Analyze, can cut sample sizes by half, saving valuable time for auditors and their clients. This makes audits more efficient and allows auditors to focus on higher-risk areas, improving overall audit quality," he said. 

Audit Intelligence Analyze will be available in the U.S. this coming fall, and in the U.K. sometime in 2025. Future planned additions to the suite include Audit Intelligence Test, which automates substantive testing and verification by dynamically tracing accounting transactions to banking activity and supporting documentation; as well as Audit Intelligence Plan, which merges full data populations with technology-driven analytics to empower auditors' planning and risk assessment processes.

This is but the latest development in AI for Thomson Reuters. In March of this year, the company announced it was rebranding in order to emphasize its commitment to investing in products and technology that leverage generative AI (see previous story). Through customer conversations and research, Thomson Reuters saw recurring themes, including the demand for clarity and guidance in navigating complex situations, particularly in the era of generative AI. This led to the inception of a new brand promise, To Clarify the Complex, reflecting the company's history of providing content, technology and analysis. The rebranding — with a new promise and messaging, tone of voice, color palette, simplified logo and modernized fonts — is meant to position the company squarely as a technology company.