Original article was published by on artificial intelligence
Express News Service
BHUBANESWAR: In its bid to ensure greater fiscal accountability, effective resources management and increased productivity, the state government is set to go for integration of artificial intelligence (AI) in the financial auditing mechanism for its organisations in a big way.
The Directorate of Local Fund Audit (DLFA) has started work on an AI project that is aimed at reshaping organisational accountability and bringing about greater trust on Government institutions. It is already seeking advisory services from experts for the successful implementation of the technology infusion in local fund audit automation.
The Government has appointed Professor (Information Systems) of XIMB Sanjay Mohapatra as Advisor to the AI implementation committee of DLFA. He will assist LFA to develop a comprehensive strategy to analyze processes and develop implementation plans for AI-enabled automation and advise on available options and capabilities along with skilling of officials As per the project, the audit of organisations will be conducted using various components of AI like machine learning, deep learning, natural language processing and computer vision.
Combined with other AI components, the technology can classify documents according to type, extract relevant information and perform analysis. The auditors can detect fraud by creating sophisticated machine learning-based modules. The audit can be further transformed by deep learning, which can analyze unstructured data. Data from financial statements can be extracted to calculate proposed materiality based on a range of benchmarks.
“AI will help auditors optimise their time, enabling their ability to judge and analyze deeper set of data besides making it possible for them to work smarter and better,” said an official involved with the project.
The State has 13,606 auditee institutions that are subjected to audit by the LFA organisation. The DLFA, a statutory audit organisation, functioning under the administrative control of Finance department has been undertaking audit of Government, grant-in-aid institutions, Panchayatiraj institutions, Urban Local Bodies, Development Authorities and Universities besides schools, colleges and endowments.
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Since auditors face innumerable challenges while evaluating thousands of documents and undertaking investigations on ambiguous transactions, use of AI will enhance their service and accuracy.
“After skilling of officials with basic and applied concept of AI in local fund audit, the project will be implemented on a pilot basis before making it universal,” the official added.