Factsheet - Use of Artificial Intelligence by Service Providers

Factsheet

This is a members only resource.

Please login to access.

Author

IIA-Australia

Date

2025

Topics Explored

Internal Audit, Internal Audit Management, Emerging Technologies and Artificial Intelligence

Format

Factsheet

Extract/Description

Artificial Intelligence (AI) is technology enabling computers and machines to simulate human learning, comprehension, problem-solving, decision making, creativity and autonomy.
The CAE’s monitoring of the use of technology tools extends to those performing the engagement, whether they are in-house or service provider resources.

Key Points

1. Artificial intelligence (AI) is a current technology and therefore an internal audit function should consider whether its use would be beneficial. There are also a range of risks to consider, whether it is used by inhouse teams or service providers.
2. To mitigate the risks related to AI usage by your service providers, it is wise to add safeguards to your existing service provider contracts and agreements.
3. A range of considerations are outlined.

Relevant Industries

All

Level of Assumed Knowledge

Intermediate

Aligned to Global Internal Audit Standards

Yes