E-Book : 3rd edition: AI-Augmented Audits

This third edition, fully updated for July 2026, expands the original work with dedicated coverage of frontier AI models, autonomous AI agents, and a comprehensive practitioner toolkit — reflecting the step change in capability and adoption that has occurred since the first edition.

The book now covers the full spectrum of AI available to internal audit functions: from machine learning and large language models to the latest frontier models — Claude Opus 4, GPT-5, Gemini 2 Pro, and DeepSeek — with practical guidance on model selection, prompt engineering, data governance, and responsible deployment. A new chapter on AI agent orchestration explores how multi-agent pipelines, agentic frameworks, and human-in-the-loop governance are beginning to reshape what automated audit procedures can achieve.

As in previous editions, concrete algorithms and techniques are central: anomaly detection for transaction testing, graph neural networks for fraud and related-party analysis, time-series models for continuous risk monitoring, process mining for end-to-end control assurance, sentiment analysis for culture assessment, and predictive models to anticipate emerging risks before they surface in a report.

The human dimension remains at the core. The book explores how auditors' roles, judgement, and credibility evolve when working alongside AI — and how the function shifts from retrospective checking to continuous, insight-driven assurance with greater relevance, influence, and strategic value.

This edition adds five practical annexes: a prompt library of 20 validated audit prompts across every phase of the audit cycle; an AI maturity self-assessment tool; a model risk assessment template; an AI governance checklist for CAEs; and a glossary of AI terms for audit practitioners.

The result is a practical, experience-based guide for audit leaders, professionals, and transformation teams who want to future-proof internal audit, build genuine AI capability, and position the function as a trusted, forward-looking partner in an increasingly complex and AI-driven business landscape.