The Golden Age of the Big Data Audit: Agile Practices and Innovations for E-Commerce, Post-Quantum Cryptography, Psychosocial Hazards, Artificial Intelligence Algorithm Audits, and Deepfakes

Abstract

Since the audit of the Parthenon in the 5th century, the audit has remained unchanged, focusing backward on financial statements. Global regulatory pressures are mounting for audit professionals and public accounting firms to make structural changes. In the 21st century, a new type of audit, the EPSAC value audit, is emerging, focusing on non-financial information, including operational data from company business functions and processes, and big external data, including social media. In addition, EPSAC focuses on the critical engagement areas of e-commerce, post-quantum cryptography, psychosocial hazards, artificial intelligence and machine learning, and tackling deepfakes. While a talent shortage of subject matter experts exists, auditors can use artificial intelligence knowledge bases to deliver the value audit. Such knowledge bases extend to the key EPSAC domains of cybersecurity and ESG, creating proxies for virtual team members. For example, industry 5.0, combining A.I. and IoT innovations, requires auditors to augment their skill sets with knowledge bases beyond traditional financial expertise to effectively navigate the complexities of the changing business environment, enhance the quality of audits, and provide valuable insights and assurance to stakeholders.