How CFOs Can Turn AI-Enabled Audits Into An Advantage
Jan 12, 2026
For the office of the CFO, the continuous pressure and ever-expanding complexities of the audit cycle are an unavoidable reality. This pressure is no longer confined to the end of the year; it shapes year-round processes and best practices as companies contend with growing demands for tighter controls, faster close cycles and ever-increasing data volume. Now, the accelerating adoption of AI technologies is raising the stakes, adding a layer of complexity to internal processes while opening the door to transformative opportunities. Strategic finance leaders who mobilize the use of AI can guide shorter-term improvements in accuracy and efficiency while also redefining the bigger picture across accounting and finance operations.
The growing prevalence of AI brings both heightened scrutiny and new opportunities. The quality of audit engagements has been voiced as a recent concern and ongoing area of focus for the Public Company Accounting Oversight Board (PCAOB). With companies and auditors alike now using AI within the audit cycle, the PCAOB has taken notice and weighed in on how to use the technology efficiently and safely. With AI in the mix, CFOs should focus on establishing guardrails that help deliver stronger evidence, tighter controls and more efficient audits. This new paradigm presents an opportunity to leverage AI-enabled audit efforts as a strategic advantage.
AI In The Audit: Why You Shouldn’t 'Wait And See'
History offers a clear lesson: Early adopters are the ones who shape the standards and governance. Think back to the new revenue and lease accounting standards. The small group of companies that jumped in early, proving new workflows and demonstrating how the rules applied, were ultimately the ones who influenced the resulting standards, best practices and regulatory sentiment.
AI is following a similar curve. Accounting and finance leaders who invest in and validate their AI usage now will be at the table proving how the technology can be used most effectively and responsibly. Companies that delay AI adoption risk being relegated to reacting to the standards others have set. When companies and auditors both bring AI to the table, quality can become opaque without shared standards and transparency. For accounting and finance leaders, sitting on the sidelines is not the safe choice; early adoption gives you the power to define the terms of today’s AI-affected audit relationship.
Aim For Responsible, Effective AI Use
Many professionals instinctively start their AI journey by surveying the landscape of tools. But the smarter first step is for companies to look inward: Identify high-effort, high-friction areas in your current close and reporting cycle. Where are teams spending time on manual, repetitive tasks? Where are errors creeping in?
CFOs and audit professionals should be strategic and selective about using AI within the audit cycle by picking “no regrets” proving grounds, where AI consistently demonstrates considerable value with little risk. Journal entry anomaly detection, duplicate invoice checks, variance narratives and contract extraction for leases or revenue are all prime candidates. Responsible implementation starts with AI that’s fitted to a company’s existing internal controls. That means tying each use case to a specific risk or assertion, defining what qualifies as “sufficient appropriate evidence” and then putting the proper governance in place.
There are tangible steps CFOs can take to establish clear AI guardrails. Start by conducting a post-audit and post-close technology review to pinpoint where AI or automation has already touched the close, consolidations or auditor requests, and to identify where evidence, lineage or documentation slowed things down. From there, publish an acceptable use and model governance policy so everyone understands what’s fair play. Create a register of models and use cases, including the owner, purpose, data sources, validation and change control. When it comes to implementing AI safely within an audit cycle, there’s no such thing as being too thorough. AI is powerful, but it’s only as reliable as the data and people behind it.
How To Pilot AI And Support Audit Success
As with any technology, when activating new AI-enabled solutions, CFOs must ensure that the data feeding into them is clean and audit-ready. One example of how AI might tangibly affect the audit cycle is in cases where a business combination occurs and there is off-balance-sheet (OBS) data with financial implications, such as letters of credit, operating leases, contingent liabilities or other similar items. AI can be used to “read” this information, enabling more streamlined financial and audit-related efforts.
When piloting use cases, treat evidence as the product. In each case, create a repeatable evidence pack that includes data lineage, thresholds, exceptions, reviewer sign-offs and retention. Invest in role-based training for controllers, audit liaisons and analysts, and consider leveraging third-party advisors to accelerate the first wave while transferring knowledge to your team.
Across the board, CFOs should look beyond their own walls. Creating or joining industry working groups of five to 10 peers provides an opportunity to share playbooks, compare lessons learned and help shape the standards that auditors will rely on. Track and share clear metrics that show how AI is shortening the audit cycle and reducing risk.
The AI Adoption Timeline Starts Now
The window for “wait and see” is closing. Companies must have a clear AI adoption road map for finance and audit in 2026. Aim to launch pilots in the first half of the year, as the technology will likely shape the next audit cycle and have an even greater impact in the fiscal years that follow.
At the very least, AI speeds up an audit. When handled responsibly and strategically, it transforms audit season from a burden into a lever for quality, speed and trust. It can also reshape accounting and finance operations throughout the rest of the year. CFOs who activate AI-enabled strategies now will not only ease compliance pressure but also set the standard for how innovation delivers an advantage in the audit.
{The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.}
[Helen Mason is a Senior Managing Director and the Denver Market Leader at Riveron.]
[Forbes]
