Auditors urge caution on AI, recommend quarterly reconciliations and occasional outsourcing to ease year‑end pressure

During the audit presentation, members asked whether PB Mears uses artificial intelligence in its audit work. The firm said adoption has been cautious and limited because of confidentiality and reliability concerns.

“Confidentiality is an issue. Hallucinations and reliability of data is also an issue,” a PB Mears speaker said. The firm described internal guidance and a task force that reviews allowable use cases and trains staff on where AI may be appropriate (for example, drafting public‑facing summaries) and where it should not be used (decision‑making or handling confidential records).

Committee members and auditors also discussed the role of remote work in oversight and year‑end closing compression. PB Mears said remote work is a useful recruiting tool but stressed the need for guardrails and interim checks. The firm noted many clients are outsourcing portions of year‑end preparation or hiring temporary specialists for reconciliations and close support when GASB changes add complexity.

Why this matters: auditors’ technology stance and staffing choices affect how well local governments can maintain control over financial reporting as standards evolve. The committee was advised to consider periodic outsourcing or temporary support during high‑demand periods and to formalize remote‑work guardrails to preserve review and oversight.

What’s next: auditors said they will share best‑practice white papers and suggested the county consider training and policy work on AI use and quarterly reconciliations to reduce year‑end pressure.