Tech in Auditing: Past, Present, and future

Technological Progress

GK: lost to computer; jobs arent going away they are just changing

BG: we think linearly bad at exponentially

Background: Tech Capabilities

• google neural machine translation: bots read abt same articles in diff language

• Facebook chatbots:

• alphaGo and decision tree complexity: lots of possibilities; computer did new move and then he did one back and he won

Input → Black Box → Output

black box is just a model; statistical regression models; set of programs that keep trakc of what words associate w each other

• fitting and refitting statistical models

  • minimizing error terms

  • maximizing explanatory power

• detecting patterns in higher order transactions

  • interaction: shows when one variable changes the effect of another variable

  • one way effect

  • 2 way interaction

  • 3 way interaction

  • 4 way interaction

Technological Possibilities in Accounting and Auditing

• we dont see outcomes until they occur

• ai capabilities