CPAOne: AI, Analytics and Beyond

Attended the CPA One Conference almost two weeks ago in Ottawa, Ontario. Given that my space is in audit innovation, I attended the more techno-oriented presentations. Here's a summary of the sessions that I attended:

"Big data: Realizing benefits in the age of machine learning and artificial intelligence": The session was kicked off by Oracle's Maria Pollieri. The session delved deep in the detail of machine learning and would have been beneficial to those who were trying to wrap things around thing more from a technical side. She was followed up by Roger's Jane Skoblo. She mentioned a fact that really grabbed my attention: when a business can just increase its accessibility to data by 10%; it can result in up to $65 million increase in benefits.

The next day started with Pete's and Neeraj's session on audit automation, "Why nobody loves the audit". They want over a survey of auditors and clients on the key pain points of the external audit. It turns out that these challenges are actually shared by both. For example, clients lack context on "the why" things are being collected, while auditors found it difficult to work with clients who lacked such context. On the data side, clients have hard time gathering docs and data, while the auditors spent too much time gathering this information. From a solutions perspective, the presenters discussed how Auvenir puts a process around gathering the data and enables better communication. This will be explored in future posts when we look at process standardization as a key pre-requisite to getting AI into the audit. 

The keynote on this day was delivered by Deloitte Digital's Shawn Kanungo, "The 0 to 100 effect". The session was well-received as he discussed the different aspects of exponential change and its impact on the profession (which was discussed previously here). One of the key takeaways I had from his presentation was how a lot of innovation is recombining ideas that already exist. Check this video he posted that highlights some of the points from his talk:



Also, checked out the presentation by Kevin Kolliniatis from KPMG and Chris Dulny from PwC, "AI and the evolution of the audit". Chris did a good job breaking down AI and made it digestible for the crowd. Kevin highlighted Mindbridge.ai in his presentation noting the link that AI is key for identifying unusual patterns.

That being said, the continuing challenge is how do we get data out of the systems in manner that's reliable (e.g. it's the right data, for the right period, etc.) and is understood (e.g. we don't have to go back and forth with the client to understand what they sent).

Last but not least was "Future of finance in a digital world" with Grant Abrams and Tahanie Thabet from Deloitte. They broke down how digital technologies are reshaping the way the finance department. As I've expressed here, one of the keys is to appreciate the difference between AI and Robotic Process Automation (RPA). So I thought it was really beneficial that they actually showed how such automation can assist with moving data from invoices into the system (the demo was slightly different than the one that can be seen below, but illustrates the potential of RPA). They didn't get into a lot of detail on blockchain but mentioned it is relevant to the space (apparently they have someone in the group that specifically tackles these types of conversations).


Kudos to CPA Canada for tackling these leading-edge topics! Most of these sessions were well attended and people asked questions wanting to know more. It's through these types of open forums that CPAs can learn to embrace the change that we all know is coming.

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else

RPA and the Accountant: A path out of the mundane?

One of the latest hype technologies is Robot Process Automation (RPA).

My first question when coming across this, is what is the difference between this and cognitive computing? 

As can be seen by these videos, it's more about "dumb" automation instead of "smart" innovation: where routine tasks are handled by the system instead of a person. This is in contrast to something like IBM's Watson, which attempts to understand language and offer probabilistic judgments as to what is the right answer to a question like it did on Jeopardy!


The first video (produced by Deloitte UK) does a great job of actually showing us how RPA can automate the process of extracting information/documents from email and the generating invoices through the company's ERP:

The strength of this video (produced by EY) is showing us the business case for RPA:

The idea is that RPA can automate routine tasks, instead of offshoring. In other words, it brings the world of automation onced reserved for the assembly line to the back office.

As described in this Deloitte publication, it puts RPA as the first step towards a cognitive enterprise - automate the task and then bring cognitive, AI, machine learning, etc., into the process to make it smarter.

To use a maturity model approach, RPA is the first level in bringing together the necessary data and processes to actually train the algorithm to make it smarter.

What does this mean for auditors and accountants?

For accountants, the back office is going to require less people in terms of executing these mundane tasks.

However, this doesn't necessarily mean that jobs will be lost.

As with the advent of cloud computing, the enterprises will have to determine whether such talent can be used more effectively to improve the quality of financial reporting and work on the back log of finance projects that haven't been attended due to staff working on these low-value tasks. That being said, the problem of meeting quarterly targets to feed investors insatiable desire for profits is something that can't be ignored when discussing whether management will choose profits over better processes.

For auditors the story is a little different.

The reality of the profession is that it can't retain talent because people find the work unsustainable: it's hard to shutdown your personal life for a third of the year or more to meet the needs of clients during busy season.

RPA and automation could make the profession more sustainable, as these mundane tasks could be handed to a system instead of a junior. This is similar to the "race with the machine" concept I mentioned in this post, when referring how Watson is helping doctors treat cancer.  Auditor could then focus on more value added tasks, such as assessing aggregate risks, industry trends, etc. Such insights will improve audit quality and give clients better understanding of business and audit risks, making the work more interesting for both auditors and auditees alike.

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else.