CA Institute has initiated talks with Ministry of Electronics and Information Technology (MeitY) to jointly develop an ‘AI Audit Tool’ to track performance of corporate India and detect corporate frauds, its President Ranjeet Kumar Agarwal has said.
The new tool will leverage artificial intelligence (AI) to guide and assist companies in remaining as ‘going concerns’, Agarwal added.
After assuming charge as ICAI President, Agarwal had announced that CA Institute would during his Presidency focus on ‘AI in ICAI’.
“I have recently written to MeitY Secretary Krishnan with a proposal to jointly develop AI Audit tool,” Agarwal said.
The AI tool will used to track performance of company, fraud reporting or any qualification. “How we can guide and assist in companies remaining as going concerns. There are so many areas where both of us (ICAI and MeitY) can be together,” he said.
ICAI has till now allocated ₹ 25 crore for building AI tools for benefit of over 9 lakh students and 4 lakh members. Agarwal also said that plans are afoot to increase the AI budget to ₹ 100 crore.
India has little over 6,000 listed companies and about 17 lakh unlisted entities.
Students’ AI assist
Agarwal also said that CA Institute is now set to handover new AI GPT tool to its over 9 lakh students. This tool will help these students in improving their preparations for the CA exams.
“For instance, the AI-based GPT tool will include examination questions of the last 75 years and the year it was asked so that students can do deep research. For instance, a student can check with GPT as to how many times in last 75 years had ICAI asked a question on a particular Accounting Standard. Answers will come out in the GPT in less than two minutes,” Agarwal said.
Similarly for ICAI’s 4 lakh members, a new AI Tool is being developed to help access financial statements of the 17.06 lakh companies.
“In one query, a member can for instance look at how many similar qualifications have been made by other auditors in financial statements of various companies. Also a member can look at how much audit fees have been paid for various companies in corporate India and make a reasoned judgement,” Agarwal said.