With the onset of and hype around ChatGPT, companies increasingly start experimenting with tools that involve artificial intelligence (AI). However, guidance and frameworks on how internal auditing can deal with AI remain scarce. Back in 2017, the IIA outlined in their white paper Artificial Intelligence – Considerations for the Profession of Internal Auditing that internal audit’s role in AI is to „help an organization evaluate, understand, and communicate the degree to which artificial intelligence will have an effect (negative or positive) on the organization’s ability to create value in short, medium, or long term.“ To help fulfill this role, the IIA has introduced an AI Auditing Framework consisting of three overarching components: AI Strategy, Governance, and the Human Factor. AI Strategy involves Cyber Resilience and AI Competencies, Governance involves Data Architecture & Infrastructure and Data Quality elements, and the Human Factor involves Ethics and The Black Box elements. Relevant objectives and activities or procedures that address these components are provided in the special three-part edition of the IIA’s Global Perspectives and Insights.
Internal auditors can leverage this framework in providing AI-related advisory or assurance services as appropriate to the organization. While this framework has been around for some time, it is common to only a few internal audit functions.
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