The CA Thingy

When AI Makes Mistakes: How to Audit Automated Workflows

When AI Makes Mistakes: How to Audit Automated Workflows

May 9, 2025

AI doesn't eliminate errors—it changes their nature. As CAs increasingly rely on automation, smart firms are building 'safety nets' that catch AI mistakes before they reach clients. Here's how to audit automated workflows without losing efficiency gains.

1. The 5 Most Common AI Errors in CA Work

  • Context blindness: Missing client-specific exceptions in tax rules
  • Document misinterpretation: Extracting wrong figures from scanned receipts
  • Version drift: Using outdated compliance rules after law changes
  • Overconfidence: Filling gaps with plausible but incorrect data
  • Silent failures: Completing tasks with undetected errors

Real example: An AI tool processed ₹18L as ₹1.8L in 7 filings before being caught.

2. The 3-Layer Audit Framework

Layer 1: Pre-Processing Checks

  • Validate source document quality (e.g., minimum DPI for OCR)
  • Flag unusual figures (₹ values outside client's normal range)

Layer 2: In-Process Guardrails

  • Cross-check AI outputs against previous filings
  • Run parallel calculations using different methods

Layer 3: Human Spot Checks

  • Review 10-20% of AI-processed items randomly
  • Focus on high-risk areas (GST credits, deductions)

3. Building Your AI Audit Checklist

  • Input validation: "Are all source documents legible and complete?"
  • Logic verification: "Does this depreciation method match the client's policy?"
  • Output sanity checks: "Is this TDS amount more than 10% variance from last quarter?"

Pro Tip: Create separate checklists for GST, TDS, and audit workflows.

4. How to Measure Your AI's Error Rate

  • Track corrections: Log every manual override in The CA Thingy
  • Calculate 'AI accuracy score': (Correct outputs / Total outputs) × 100
  • Benchmark: Top firms maintain more than 98% accuracy for automated tasks

5. How The CA Thingy Safeguards Automated Work

  • Change tracking: Highlights all AI-modified fields in color
  • Approval workflows: Requires human sign-off on high-value changes
  • Version comparison: Side-by-side views of AI output vs final submission

Final Thoughts

  • AI errors are inevitable—but detectable
  • Start auditing where the risks are highest (GST credits, foreign transactions)
  • Use The CA Thingy's comparison tools to make audits 3x faster