The Financial Accounting Standards Board today asked stakeholders for feedback on its future standard-setting agenda. 

The FASB published an Invitation to Comment and is requesting feedback on improvements to financial accounting and reporting needed to give investors more and better information that informs their capital allocation decision-making, reduce cost and complexity, and maintain and improve the FASB accounting standards codification. 

Stakeholders should review and submit feedback by June 30.

Patrick Dorsman/Financial Accounting Foundation

“As a result of the significant progress on the 2021 agenda consultation priorities, the FASB staff is once again seeking stakeholder input on the Board’s future agenda and initiatives,” FASB technical director Jackson Day said in a statement. “We encourage stakeholders to take this opportunity to review the ITC and share their views on financial accounting and reporting priorities they think the Board should address going forward.”

The FASB began the current agenda consultation in 2024, doing outreach to over 200 stakeholders, including investors, practitioners, preparers and academics. The discussion in this ITC is based on input received from those stakeholders and does not contain FASB views. Most of those stakeholders said “there is not a case to make major changes to generally accepted accounting principles at this time,” according to the announcement, so many of the topics that were suggested focus on targeted improvements to GAAP.

The board encourages stakeholders to continue to submit agenda requests about needed improvements to GAAP as they arise.

The traditionally static field of auditing is on the edge of an industry-changing transformation, thanks to AI. 

As pattern-learning AI machines quickly incorporate themselves into industry after industry, auditing is next in line. Industry giants like the Big Four and Wolters Kluwer are already using AI in their reporting functions. According to a Thomson Reuters Institute 2024 survey of audit professionals, 74% of firms are considering adding progressive technologies like generative AI to their auditing workflows. 

As more firms and companies adopt AI in their accounting processes, it signals a significant step toward a new era in which intelligence technology can take over tasks that are too time-consuming and repetitive, allowing for more complex tasks from human counterparts.  

Rather than resisting, the industry should welcome this evolution. AI is not a replacement but a partner, enhancing the value auditors bring by handling routine tasks with precision, allowing professionals to focus on areas where human judgment and creativity are irreplaceable.

Where AI fits into the current state of auditing

The average auditor typically spends their days conducting data analysis, monitoring for fraud, reviewing accounts, gauging risks and financially planning accounts. However, firms are struggling to keep their employment up, snowballing into less accurate data reporting. 

According to Forbes, in 2023, 720 companies cited insufficient staff in accounting and other related departments as a reason for data errors being up more than in previous years. 

Even as roles in finance continue to rank among the top earners in the job market, less and less qualified professionals are interested in taking on all of the tasks this career entails. This leaves high-level and top-paid professionals juggling repetitive tasks, day in and day out, eating up time that could be utilized in better ways. It’s no surprise that the main conversation around careers in finance is centered upon work-life balance or the lack thereof. As workplace demands continue to rise, so do simple data-error mistakes. 

When incorporating AI into the auditing process, we’re able to better predict security anomalies and solve the answers to repetitive, time-sensitive data needs. For example, instead of waiting until the end of each month for irregularities, AI systems can provide real-time updates. 

New workplace dynamics

Auditors are no longer confined to static reports; they now have the power to leverage AI for real-time analyses, instant anomaly detection and precise financial risk forecasting — capabilities that are revolutionizing the field today. By automating routine tasks, AI empowers auditors to dedicate their expertise to high-value areas like complex financial planning and strategic advisory, where human insight remains indispensable.

Moreover, advances in technology are reshaping how auditors interact with financial data. Instead of relying on accountants as intermediaries, auditors can now engage directly with a company’s data through intuitive, AI-powered interfaces similar to chat support. These systems enable auditors to ask questions and receive immediate, precise answers, streamlining workflows and enhancing their ability to deliver timely, actionable insights.

By automating repetitive processes, firms can allocate more resources to addressing complex challenges that demand advanced analysis and strategic thinking. This shift enhances the depth and accuracy of client engagements, enabling faster, more insightful feedback and stronger client relationships. Additionally, these innovations drive higher standards of service delivery, positioning firms as forward-thinking leaders in the field. 

The skills needed to keep up

While AI’s ability to automate routine tasks allows professionals to concentrate on more strategic, high-level responsibilities, it also introduces new challenges that must be addressed. As technology continues to evolve, navigating these obstacles will be key to ensuring long-term success and innovation in the industry.

Organizations urgently need to prioritize upskilling their workforce, with 23% of finance professionals highlighting the lack of training in critical infrastructure. Without addressing this gap, even the most innovative technologies risk underutilization, hindering the industry’s progress toward a secure and data-driven future.

Additionally, the finance industry must focus on strengthening data security measures and upholding ethical standards in the use of AI systems. If these areas are ignored, the industry risks eroding trust, facing heightened vulnerabilities and compromising long-term innovation. 

Despite these hurdles, the move toward AI-driven workflows signals the dawn of a new era, where collaboration between advanced technology and human expertise drives innovation and redefines the value of financial professionals in a rapidly changing landscape.

Embracing the impact

AI could be coming for the audit industry, not as a threat, but as the greatest asset of this new era. The value of adding AI to the audit process goes beyond efficiency, but solves a bigger industry problem as a whole. 

If institutions want to stay ahead, the answer to their problems is right in front of our faces, and slowly being incorporated into the workflows of industries across the landscape every day. We shouldn’t run from this innovation, but instead embrace it and prepare our workforce for the skills needed to thrive in this new world. 

As we embrace innovation and AI, our employers and customers will thank us.