Jamaica Gov to leverage AI to improve auditing practices

This initiative, presented at the 2024 Audit Committees’ Conference in Kingston on November 7, aims to improve the efficiency, accuracy, and overall effectiveness of audits within the public sector.

In her keynote address, Minister Williams emphasized AI’s potential to improve audit processes by providing predictive capabilities that can identify trends, patterns, and potential risks, including fraud. She highlighted how AI tools can detect unusual transactions or deviations from established financial norms, allowing for timely intervention before such issues escalate into significant financial challenges.

“AI can be used to be predictive; it can identify trends and patterns in financial data that will signal potential risks or fraud. It can also be used to identify unusual transactions or deviations from established financial patterns and flagging them for review before they lead to significant issues,” said Williams, before going on to explain that “AI tools can help to model various financial scenarios based on historical data and market trends allowing audit committees to better understand potential risks and impact on future financial health.”

AI will also assist in modeling various financial scenarios, enabling audit committees to assess risks and their potential impact on an organization’s future financial health. By using AI to analyze historical data and market trends, audit committees can make more informed decisions and stay ahead of emerging financial threats.

The conference also featured keynote speaker Richard Chambers, who addressed the growing need for audit committees to understand new and emerging risks, such as cybersecurity and technology risks, including AI. Chambers noted that many audit committee members come from a time when such risks were not as prominent and must now adapt to the evolving technological landscape.

“The kind of risks that audit committees are expected to have is a greater sense of things like risk management itself, cybersecurity and new areas like technical and technology risks that a lot of audit committees are not equipped to understand,” said the founder and chief practice leader of Richard F. Chambers and Associates.

He then added: “A lot of audit committee members came from an era where technology risks were not so critical so they have to force their way of thinking to recognise what these technology risks can do like cybersecurity and more recently AI.”

Wayne Robertson, Permanent Secretary in the Ministry of Legal and Constitutional Affairs, also spoke at the conference, commending the government’s efforts to strengthen the regulatory framework that governs audit committees. He stressed the importance of transparency and accountability and acknowledged the ongoing legislative reforms designed to bolster the effectiveness of auditing practices in Jamaica.

The 2024 Audit Committees' Conference, themed “Navigating the Future: Audit Committees as Guardians of Trust in Tomorrow’s World,” also followed the 2023 amendment to Section 33 of the Financial Administration and Audit Act. This amendment grants the Cabinet Secretary the authority to appoint audit committee members, further solidifying the government’s commitment to strengthening the financial oversight in Jamaica.

The conference also included presentations by several experts, including Stuart Hylton, Rory Ebanks, David Hall, and David Mullings, who provided insights into assurance services, cybersecurity, and financial management.