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Explore audit innovation with Deloitte AI Robot #8

Lead in the future of audit

Deloitte AI Robot

To see a bigger world, open your eyes wider. Over the past three months, I have taken you on a journey through Deloitte China Audit Innovation and Transformation to see how the audit profession is changing in this digital age. I have also shown you a series of Deloitte's unique audit innovation tools and a range of leading-edge technological applications that are driving audit transformation via the Deloitte Audit Innovation Tools Showroom. Though there remains much to say, today we have come to the last issue in this series.

Deloitte China Audit & Assurance Innovation Leader
Collin Jin

The world is changing as technology advances at speed. As a leading global professional services firm and pioneer in digital innovation, Deloitte looks to the future with a focus on the present, proactively exploring ways to integrate leading-edge technologies into the audit profession to enhance audit quality, improve audit efficiency, and reinforce our core value. The Deloitte Audit Innovation Toolkit, which includes Deloitte AI Robot, now covers all processes of our audit work, and is accelerating the transformation of traditional audit service towards new digital, intelligent audit, and driving Deloitte to lead in the future of audit.

Deloitte AI Robot

The greatest innovations are yet to come! Today, I will introduce to you the final four Deloitte Audit Innovation tools and platforms: Deloitte Auvenir, Deloitte Cobalt, Deloitte Coinia and Deloitte iCredit.

Deloitte Auvenir

Auvenir is an ecosystem platform solution developed by Deloitte amid digital transformation across industries. It is a key initiative driving the digital transformation of audit in the accounting sector by helping small to medium-sized accounting firms enhance audit digitalization, break through the limits of their resources and capabilities, and transform their audit service models. Leveraging Deloitte's industry-leading expertise and digital practices, Auvenir integrates automated, intelligent professional audit process services with a full set of modules including project management, client collaboration, data analytics and information security management, allowing small to medium-sized accounting firms to quickly and efficiently adopt digital audit solutions.

Deloitte Cobalt

Deloitte incubated the Deloitte Cobalt platform as part of our AI accelerator program. The platform uses AI to conduct comprehensive, intelligent sensing of financial, operational and reputation risks, and extends the application of AI to broader domains including going-concern judgements and business development.

Deloitte Coinia

Leveraging cloud-based resources and touchpoints, Deloitte Coinia verifies various digital information (e.g. smart contracts) stored on blockchains, and includes functions that connect, download and analyze this information, enhancing Deloitte's audit capability in blockchain applications.

Deloitte China Audit & Assurance Partner
Charlotte Shen

Deloitte's intelligent credit risk monitoring platform iCredit integrates our extensive experience in auditing credit assets for the financial sector, especially large commercial banks, and combines this with AI to translate industry expertise into technological capability, maximizing the value of insights into the credit sector.

Deloitte China Audit & Assurance FSI Partner
Calvin Zeng

Through iCredit, audit engagement teams work according to a consistent set of standards, rather than subjective judgments, and conduct 100%, full credit review rather than selective sampling. This allows teams to focus on high risk customers and deploy more audit resources to high risk areas, helping to identify potential risk accounts and give early warnings on different risks for management and governance.

Comprehensive, intelligent data integration

iCredit consolidates various data and information, including structured data from banks' credit databases, unstructured data extracted from post-loan reports via AI, thirty-party databases covering industries and other areas, and information on public sentiment, to fully grasp borrowers' credit ratings. Its integration of multi-sourced data helps create more complete pictures of businesses' status quo.

Explainable machine learning core

iCredit combines data and information integration, the latest regulatory requirements and guidelines, and Deloitte's audit expertise, with banks' risk management appetite to dynamically adjust model parameters. It develops "4+1" risk rating rules, supplemented by a machine learning model to quantify risk factors, fully explains modeled results, and forms opinions based on industry expertise.

All-round risk checklist

iCredit's risk checklist shows the credit rating and details of each customer as recommended by the model. By aggregating information on risk accounts based on loan balance, region, industry and scale, it identifies every area of concentrated risk, allowing banks to further optimize credit business investments. For individual risk accounts, iCredit clearly sets out sources of risk and public sentiment from the internet.

Feedback from an external expert

In the absence of reliable platforms or applications for credit assessment, the entire process depends significantly on post-loan reporting by account managers in the bank. And information is often contained in large amounts of unstructured document data that is not easy to extract and use.

So iCredit has been very attractive to banks, given Deloitte China’s knowledge of and insights to the market, the diversified data sources used, and the newest technologies that this application has been built upon.

Detailed research was conducted to understand the possible means used to commit fraud, to inform a comprehensive analysis of this problem. As a result, a standardised workflow for credit assessment was designed that was based on industry expertise. This XAI-based platform for credit assessment acts as a reliable information source to support decision making, using machine learning models for data calculation and risk prediction. It integrates multiple data sources and incorporates consistent, centralised data cleansing, storage and management. OCR and NLP are used to read documents and extract data. 

Source: ACCA, Explainable AI: Putting the user at the core

Deloitte China Audit & Assurance Innovation Leader
Collin Jin

In this digital era, we are seeing an unprecedented shift in the accounting industry. Accounting firms and corporate finance departments are exploring advanced areas of development in this new age. As an industry leader, Deloitte remains alert to the challenges ahead. Throughout this series, we have looked back at the path of Deloitte Audit Innovation and seen how we started from talent and culture to differentiate ourselves. We have paved the way through cloud computing, revealed key risks via big data analytics, freed our hands and intellects by deploying software and real robots, and engaged AI to unlock the unknown. All of this has created a fertile land from which innovative achievements will spring and thrive, reinventing every aspect of audit.

Deloitte AI Robot

In these eight issues, we have explored the path towards Deloitte's Audit Innovation and Transformation. Although I would love to continue this journey with you all, my job as a KOL has come to an end. Thank you all for your ongoing support and attention. Looking ahead, I believe there will still be plenty of opportunities for me to share with you Deloitte's latest updates and major achievements in Audit Innovation and Transformation. Innovation is an endless pursuit. Stay tuned on Deloitte's WeChat official account. Contact Collin if you have any enquiries or suggestions on audit innovation.

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