NEW SERIES-ARTIFICIAL INTELLIGENCE



The rapid development of artificial intelligence (AI) technology means internal control work in enterprises is facing profound changes. The advantages of AI in data analysis, process automation, and risk identification provide powerful support for internal control in enterprises, but at the same time, it also puts higher demands on the skills and career development of internal control personnel. Internal control specialists, need to consider how to better integrate AI and improve the efficiency and value of internal control, while ensuring their own professional competitiveness. In the era of AI, internal control personnel not only need to possess traditional internal control knowledge, but also need to master new technologies to adapt to the new mode of AI human collaboration. Each month we will follow this section with information, terminology and practice aids regarding the implementation and use of Artificial Intelligence (AI).

The Role of AI in Internal Control

Artificial Intelligence (AI) is revolutionizing internal control processes within organizations by enhancing efficiency, accuracy, and risk management. Here’s a detailed discussion on how AI is transforming internal control:

1. Data Analysis and Pattern Recognition

AI can analyze vast amounts of data quickly and accurately, identifying patterns and anomalies that may indicate potential risks or irregularities. This capability allows internal control personnel to detect issues such as fraud, compliance violations, and operational inefficiencies in real-time.

2. Process Automation

Robotic Process Automation (RPA) and AI can automate repetitive and time-consuming tasks, such as data entry, transaction processing, and report generation. This not only reduces the risk of human error but also frees up internal control personnel to focus on more strategic activities.

3. Continuous Monitoring

AI enables continuous monitoring of internal controls by providing real-time insights into the effectiveness of control measures. This allows organizations to proactively address issues before they escalate, ensuring a more robust control environment.

4. Predictive Analytics

AI-powered predictive analytics can forecast potential risks and control failures based on historical data and trends. This helps organizations to anticipate and mitigate risks, improving overall risk management and decision-making processes.

5. Intelligent Auditing

AI can enhance the auditing process by automating audit procedures, analyzing large datasets, and identifying areas of concern. Intelligent auditing tools can provide auditors with deeper insights and more accurate assessments of an organization’s internal control environment.

6. Compliance Management

AI can streamline compliance management by continuously monitoring regulatory changes and ensuring that internal controls are updated accordingly. This helps organizations to stay compliant with evolving regulations and avoid potential penalties.

7. Ethical and Governance Frameworks

AI can support the development and implementation of ethical and governance frameworks for internal control. By ensuring transparency, fairness, and accountability in AI-driven processes, organizations can build trust and maintain the integrity of their internal control systems.

Next Month: Challenges and Considerations...The Conclusion of our AI Series

The movie The Big Short captured the reality of fraud: It looks like business as usual. In the film about the 2008 economic crisis, a handful of investors pieced together what banks and regulators overlooked — mortgage-backed securities were built on bad loans destined to collapse. These individuals didn’t unravel an elaborate plot; they simply took the time to examine the underlying numbers. While most people never saw the economic collapse coming, the evidence was right in front of them. The money trail hides in plain sight. Whether losses total a few hundred dollars or topple the global economy, most fraud schemes are usually as simple as camouflaging illicit transactions within routine business activities. 

Read The Article

Where were the directors? Why investors want to know how boards act in a corporate scandal

September 25, 2025

When a corporate scandal breaks, the first question investors ask is Where were the directors? This phrase was coined by Peter Dey in 1994 when he led a report on how to improve corporate governance practices at Canadian listed companies. Corporate scandals have always existed and many stem from weak corporate governance, often caused by a lack of communication, insufficient internal controls or a very lax attitude towards potential problems. In 2024, the US administration criticized Boeing’s board for failing to adequately supervise the safety procedures of its aircraft, following several accidents involving its 737 Max model that resulted in numerous deaths. Its shares plummeted 32 percent. The company paid a fine of more than $200 mn, which was added to another fine paid in 2022.

Read The Article

How Boards Are Rewiring for Geopolitical Risk

From tabletop exercises to operational resilience assessments, the new toolkit for strategic oversight

The pace of geopolitical change has fundamentally altered how boards approach strategic oversight. What once required periodic attention now demands continuous vigilance, with boards needing to understand not just immediate risks but also their organization’s capacity to adapt and respond quickly to unexpected developments. Leading boards are transforming their approach in several key areas from geostrategic discussions to crisis preparedness. 

Read The Article

Think Global, Act Hyperlocal – How Businesses Need To Change The Way They Approach Tax And Regulatory Compliance

Sep 22, 2025

In the modern regulatory landscape, it’s hard enough to play by one set of rules. Now imagine playing by as many as 80, all in real-time while the players and the playbook keep changing. That’s the current reality for corporations in the age of electronic invoicing (e-invoicing). Today, more than 80 countries require some form of real-time e-invoicing. These mandates require that indirect taxes, such as sales taxes and value-added taxes (VAT), be applied, collected, and reported instantly at the point of sale in every jurisdiction where a business operates.

Read The Article

September 24, 2025

Top 10 International Anti-Corruption Developments for August 2025

Designed for busy in-house counsel, compliance professionals, and anti-corruption lawyers, this newsletter highlights some of the most significant international anti-corruption law and enforcement developments from the past month, with links to primary resources. This month we ask: What were the first two Foreign Corrupt Practices Act (FCPA) enforcement actions under the second Trump administration? What foreign bribery enforcement action was brought in the United Kingdom (UK)? In what ways was Switzerland a focus of foreign bribery developments in August? The answers to these questions and more are here in our August 2025 Top 10.

Read The Article

Building Resilient SMEs Through Stronger Internal Controls

September 24, 2025

Small and medium-sized enterprises (SMEs) are rightly called the backbone of Nigeria’s economy. They provide jobs, drive innovation, and anchor communities across the country. Yet too many of these businesses struggle to stay afloat, not only because of limited access to credit but also because of weaknesses inside their own systems. Ridwan Shehu is a student of accounting and a tutor preparing others for professional exams and in his experience, he has seen how the difference between a thriving SME and one that collapses often comes down to something simple: internal controls. Internal controls are the policies and processes that give order to a business. They safeguard resources, prevent fraud, and keep operations efficient. They may sound like technical jargon, but in reality, they are everyday practices, clear job roles, accurate record-keeping, and effective communication across staff and management.

Read The Article

USD 439 million recovered in global financial crime operation

24 September 2025

An INTERPOL-coordinated operation across 40 countries and territories has resulted in the recovery of USD 342 million in government-backed currencies, along with USD 97 million in physical and virtual assets. Operation HAECHI VI (April - August 2025), targeted seven types of cyber-enabled financial crimes: voice phishing, romance scams, online sextortion, investment fraud, money laundering associated with illegal online gambling, business email compromise and e-commerce fraud.

Investigators worked together to detect and disrupt online fraud as well as money laundering activities, blocking over 68,000 associated bank accounts and freezing close to 400 cryptocurrency wallets. 

In addition, around USD 16 million in suspected illicit profits was recovered from cryptocurrency wallets.

Read The Article

AI tool helped recover £500m lost to fraud, government says

A new artificial intelligence tool designed to crack down on fraud has helped the UK government recover almost £500m over the last year, the BBC can reveal. More than a third of the money clawed back related to fraudulent activity during the Covid-19 pandemic, with other cash being recouped from unlawful council tax claims and illegal subletting of social housing. The government will announce later that a new AI tool which has helped to identify the fraud will now be licensed to other countries, including the US and Australia.

Read The Article

ICI World Wide Affiliates