The auditing of financial documents, traditionally a labor-intensive task, is a promising field of application for Artificial Intelligence. Recommendation systems are capable of suggesting the most relevant passages from financial reports that meet accounting standards’ legal requirements. However, testing if the compliance requirements are satisfied is a non-trivial task. In this work, we tackle this problem from two directions. Our first approach leverages Large Language Models which we fine-tune specifically f or compliance checks. Our results show an improvement in performance over the generic baseline LLMs. A disadvantage of LLMs is that they result in high inference costs. For this reason, we explore a second approach in which we use smaller models that come with reduced running costs. Despite their smaller size, these models also show promising predictive performance.

Risk and Quality (R&Q) assurance in highly regulated industries requires constant navigation of complex regulatory frameworks, with employees handling numerous daily queries demanding accurate policy interpretation. Traditional methods relying on specialized experts create operational bottlenecks and limit scalability. We present a novel Retrieval Augmented Generation (RAG) system leveraging Large Language Models (LLMs), hybrid search and relevance boosting to enhance R&Q query processing. Evaluated on 124 expert-annotated real-world queries, our actively deployed system demonstrates substantial improvements over traditional RAG approaches. Additionally, we perform an extensive hyperparameter analysis to compare and evaluate multiple configuration setups, delivering valuable insights to practitioners.

We consider Automated List Inspection (ALI), a content-based text recommendation system that assists auditors in matching relevant text passages from notes in financial statements to specific law regulations. ALI follows a ranking paradigm in which a fixed number of requirements per textual passage are shown to the user. Despite achieving impressive ranking performance, the user experience can still be improved by showing a dynamic number of recommendations. Besides, existing models rely on a feature-based language model that needs to be pre-trained on a large corpus of domain-specific datasets. Moreover, they cannot be trained in an end-to-end fashion by jointly optimizing with language model parameters. In this work, we alleviate these concerns by considering a multi-label classification approach that predicts dynamic requirement sequences. We base our model on pre-trained BERT that allows us to fine-tune the whole model in an end-to-end fashion, thereby avoiding the need for training a language representation model. We conclude by presenting a detailed evaluation of the proposed model on two German financial datasets.

We present the Automated List Inspection (ALI) tool that utilizes methods from machine learning, natural language processing, combined with domain expert knowledge to automate financial statement auditing. ALI is a content based context-aware recommender system, that matches relevant text passages from the notes to the financial statement to specific law regulations. In this paper, we present the architecture of the recommender tool which includes text mining, language modeling, unsupervised and supervised methods that range from binary classification models to deep recurrent neural networks. Next to our main findings, we present quantitative and qualitative comparisons of the algorithms as well as concepts for how to further extend the functionality of the tool.