Dabie Tsai is a prominent leader in the accounting industry. As a former partner at KPMG, one of the largest accounting firms in the world, Dabie is extremely experienced and knowledgeable about accounting and finance. She recently discussed the future of accounting. With automation capabilities growing each year, some people worry that accountants will become obsolete.
When most people think of artificial intelligence, they assume that it means fewer people will have jobs. However, Dabie looks at artificial intelligence as a way to make people’s jobs easier and more advanced. She believes that artificial intelligence will play a significant role in the accounting industry in the foreseeable future. Computers can process data and identify issues much faster than humans. AI can help to pinpoint potential problems for accountants to solve.
Tsai believes there is a drastic difference between traditional and risk-based auditing. With traditional auditing, an accountant balances the numbers in a financial ledger, and the financial reports are reviewed. The process is relatively black and white. With risk-based auditing, the process is more evolved. Risk-based auditing requires the auditor to identify and focus on areas of higher subjectivity, complexity, uncertainty, or in other words, risk.