Analytics in Finance and Risk Management

11 Machine learning in analytical procedures in audit

Anna Karmańska

DOI: 10.1201/9780367854690-11

1 Introduction

The widespread use of emerging technologies increases operational efficiencies, and the complexity and size of organizational information assets are ever-increasing (Sekar, 2022). This unavoidable process disturbs traditional audits and transforms techniques of financial analysis. The value of machine learning (ML) in financial analysis is becoming more apparent each day (Tatsat et al., 2020). The most basic of technological advancement, Robotic Process Automation, automates an audit process such as collecting data, whereas ML uses algorithms and builds models to analyze data and make correlations and predictions (with human oversight) ...