The Accounting Podcast Baby, Where The Hell Is My Audit?
Mar 26, 2026
They debate whether AI will replace accountants or just reshape workflows. Probabilistic audit opinions and the limits of pass-fail assurance get heavy air time. Lawsuits and fraud signals show rising liability and risk detection. Firms’ diverging AI strategies — automation versus people-first — and AI agents, checklists, and upskilling rounds out the discussion.
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State Auditor Used Parody To Force Audit Access
- Massachusetts State Auditor Diana DiZoglio performed a parody song 'Baby Where the Hell Is My Audit' to pressure the legislature over a voter-approved audit.
- She sued the legislature and the case reached the Supreme Judicial Court after the legislature refused records citing separation of powers.
AI Enables Probabilistic Audit Opinions
- Audits today are effectively pass/fail but AI enables probabilistic, graded confidence (e.g., a 92% likelihood financials are materially correct).
- Blake argues investors already use AI to score companies, and audit reports could evolve to show confidence percentages or grades.
BDO Lawsuit Shows Growing Auditor Liability
- David recapped the BDO case where investors sued over negligent audits tied to Platinum Partners' $1bn fraud and won a $9M arbitration award.
- A judge expanded investor rights, creating near-privity exposure that could widen auditor liability.