Big 4 firm Deloitte and the Deloitte Foundation hosted the 2017 National Audit Innovation Campus Challenge at Deloitte University, awarding students of Morehouse College first place for their idea to develop an application to automate the audit risk assessment process.
The winning idea involved developing an application to improve the effectiveness of the risk assessment process by using artificial intelligence to identify non-financial data from external sources such as social media, journals, periodicals and newsfeeds, among others. This data, used in combination with public and non-public financial data, would contribute to the auditors’ ability to identify risks of misstatement in a company’s financial statements. The software continuously curates data and learns through direct feedback from auditors.
Under the guidance of the faculty advisors and subject matter leaders, student participants were presented with a glimpse of how innovative technologies can be applied to the audit profession in new ways. The experience highlights how an evolving audit profession requires a workforce that can tackle business challenges more effectively in a world of continuously evolving technologies, while also providing auditors with increased opportunities to deliver value for the capital markets.
Student teams from 33 top colleges and universities participated in the event, with six teams advancing to the final round. Students from Pace University earned second place. The University of Pittsburgh, University of Southern California, College of William and Mary, and University of Wisconsin-Madison were awarded honorable mentions.
Multiple emerging technologies are transforming the audit and creating exciting new opportunities, Deloitte says. Workflow automation, artificial intelligence and analytics have enhanced a number of the labor-intensive, manual processes traditionally associated with an audit, freeing up auditors to offer better judgments and deeper insights.
“As technology disrupts business at an unprecedented rate, the next-generation of talent will need to possess proficiency with emerging technologies and data analytics to help develop more innovative solutions to business challenges,” says Mike Fucci, chairman of Deloitte and the Deloitte Foundation.