Chairman of the Audit Committee Institute, Christian Ekeigwe, has urged accountants, auditors and audit committee members to embrace artificial intelligence (AI) without surrendering their professional judgment.

Mr Ekeigwe gave the advice on Wednesday while delivering a keynote address titled, “Guardians of Truth: Informed, Vigilant and Attending,” at the 2026 Audit Committee Institute Conference in Lagos.

He described auditors and audit committees as guardians of financial truth, saying the integrity of capital markets depended on their ability to provide independent assurance grounded in evidence and professional judgment.

According to him, AI is transforming financial reporting and auditing through improved data analysis, risk assessment and anomaly detection.

Mr Ekeigwe, however, warned that AI also introduces risks, including overreliance on machine-generated outputs.

“The greatest risk is not that AI will replace auditors. It is that auditors will stop thinking and defer to the machine in their place,” he said.

Mr Ekeigwe said AI could analyse entire populations of transactions and identify unusual patterns.

He, however, said the technology could not exercise the contextual judgment, professional scepticism and ethical reasoning required to assess financial reality.

He urged professionals to cultivate three qualities needed in the AI era.

He said these were being informed about emerging technologies, remaining vigilant in evaluating evidence and paying close attention to omissions in financial disclosures.

According to him, audit quality will increasingly depend on professionals combining technical competence with independent thinking rather than relying solely on AI-generated outputs.

He also called on audit committees to develop sufficient AI literacy to effectively challenge management on the use of AI in financial reporting and governance.

“The capital market does not need faster algorithms alone. It needs thinking guardians who are informed, vigilant and attending,” he said.

Also, Partner and Head of Audit, KPMG West Africa, Dr Goodluck Obi, said audit failures often result from weak corporate governance, poor internal controls and misconceptions about auditors’ responsibilities.

Mr Obi spoke with journalists delivering a keynote address titled, “Audit Failure: Why it Happens and How to Prevent It.”

He said preventing audit failures required the collective efforts of management, boards, audit committees, shareholders, investors and auditors.

According to him, many people wrongly believe auditors are expected to detect every fraud.

He explained that auditors are required to express an independent opinion on whether financial statements present a true and fair view in accordance with professional standards.

“The auditor is not a watchdog expected to sniff out every fraud. Strong governance, effective internal controls and responsible management are the first lines of defence,” he said.

Mr Obi urged auditors to demonstrate competence, independence and professional scepticism while carrying out their duties with due care.

Speaking on AI, he described the technology as a valuable tool for improving efficiency but cautioned against its uncritical use.

He said AI could generate inaccurate or misleading information and should never replace professional judgment.

“The fact that AI produces a report does not remove your responsibility. Professionals must review and stand behind whatever AI generates,” he said.

Mr Obi also stressed that transparency and accountability remained essential to quality financial reporting.

He urged companies to make adequate disclosures to enable investors and other users of financial statements to make informed decisions. 

(NAN)