Author: Dr. Madan Mohan

In today’s fast-paced digital landscape, internal audits are no longer confined to manual checklists and retrospective reviews. With the advent of intelligent tools like Microsoft Copilot, organisations can now transform their audit processes into proactive, data-driven, and highly efficient operations. When integrated with Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems, Copilot becomes a powerful ally in ensuring compliance, detecting anomalies, and driving continuous improvement.

Understanding Microsoft Copilot in the audit context

Microsoft Copilot is an AI-powered assistant embedded across Microsoft 365 applications and business solutions. It leverages natural language processing (NLP), machine learning, and data analytics to help users interact with complex systems using simple commands. For internal auditors, this means faster access to relevant data, automated reporting, and intelligent insights that were previously buried in spreadsheets or siloed systems.

Key benefits of using copilot in internal audits

1. Automated data retrieval and analysis
Internal audits often require pulling data from multiple sources like financial records, operational logs, HR systems, and more. Copilot can automate this process by:

• Fetching real-time data from ERP systems like Dynamics 365 Finance & Operations.
• Summarizing customer interactions from CRM platforms like Dynamics 365 Sales or Customer Service.
• Highlighting discrepancies or unusual patterns using built-in AI models.

This reduces the time auditors spend on data collection and allows them to focus on analysis and decision-making.

2. Natural language queries for audit tasks
Instead of writing complex SQL queries or navigating multiple dashboards, auditors can simply ask Copilot:

• “Show me all vendor payments above $50,000 in Q2.”
• “List customers with overdue invoices for more than 90 days.”
• “Generate a risk summary for our UAE operations.”

Copilot interprets these queries and returns actionable insights, making audits more intuitive and accessible.

3. Real-time risk monitoring
Copilot can continuously monitor transactions and flag potential fraud risks based on predefined rules or learned patterns. For example:

• Detecting duplicate payments or unauthorized access.
• Identifying unusual spikes in expenses or revenue.
• Alerting auditors to compliance violations in procurement or HR processes.

This proactive approach helps organisations address issues before they escalate.

4. Streamlined documentation and reporting
Audit documentation is critical but time-consuming. Copilot can:

• Automatically generate audit reports with embedded charts and summaries.
• Draft executive summaries based on audit findings.
• Maintain audit trails by logging interactions and decisions made during the audit.

Integration with Microsoft Word, Excel, and PowerPoint ensures seamless report creation and presentation.

5. Collaboration and workflow integration
Copilot enhances collaboration by integrating with Microsoft Teams and SharePoint:

• Auditors can tag colleagues, assign tasks, and share findings directly within Teams.
• Audit documents can be stored and version-controlled in SharePoint.
• Notifications and reminders can be automated to ensure timely follow-ups.

This creates a unified audit environment that promotes transparency and accountability.

Challenges and considerations

While Copilot offers immense potential, organisations must address:

• Compliance: Internal audit teams must ensure that AI usage complies with local regulations, especially when handling sensitive financial or personal data.
• Data leakage: AI tools often rely on cloud-based infrastructure and may inadvertently expose sensitive audit data if not properly configured.
• Emerging threats: Without proper oversight, AI-generated outputs may mislead audit conclusions or overlook critical risks.

• Change management: Auditors need training to effectively use Copilot and adapt to AI-driven workflows.
• Multidomain expert: To develop a comprehensive system that automates the entire audit cycle, an expert with deep knowledge of ERP, CRM, and audit processes and as well as proficiency in Copilot integration is essential.

Future outlook

As Microsoft continues to enhance Copilot with Generative AI, predictive analytics, and industry-specific models, the role of internal auditors will evolve from data reviewers to strategic advisors. Audits will become more continuous, intelligent, and aligned with business goals.

Microsoft Copilot, when integrated with ERP and CRM systems, is a game-changer for audits. It empowers auditors with real-time insights, automation, and collaboration tools that elevate the audit function from reactive to proactive. By leveraging AI, businesses can ensure transparency, mitigate risks, and drive continuous improvement across all functions.

In our next article, we’ll explore how Microsoft Copilot integrates with ERP and CRM systems to give auditors deeper, data-driven insights. Look out for Part 2 on 20 November 2025.
 

How can BDO help?

BDO brings deep domain expertise in audit and a proven track record in leveraging Microsoft Copilot across Microsoft 365, Dynamics 365 and the Power Platform to help internal audit teams achieve greater efficiency, accuracy and insight. In addition, BDO’s robust Cybersecurity, Data Privacy and Legal practices ensure that all solutions are secure by design and fully aligned with local and global data protection regulations. To explore how your organisation can leverage Microsoft Copilot with BDO’s support, speak to a BDO advisor in your country.