For C-suite executives, particularly in finance and auditing, the promise of Artificial Intelligence has often outpaced the reality. Standard generative AI can summarize text, and traditional automation can process data, but neither has truly been able to “think” like an auditor.
That is changing with the arrival of Agentic AI.
Unlike passive systems that simply retrieve information, Agentic AI systems operate autonomously. They don’t just answer questions; they plan workflows, delegate tasks to specialized sub-agents (like a “CFO Supervisor” or “Senior Auditor”), and execute multi-step reasoning to verify financial health.
By moving from simple automation to autonomous reasoning, these systems are capable of performing forensic risk analysis that previously required human intervention. Below are four key capabilities of an Agentic AI system designed for financial oversight, illustrated with real-world forensic queries.
1. Forensic Risk Analysis (The “Red Flag” Search)
One of the most powerful applications of Agentic AI is its ability to proactively scan thousands of documents for specific risk markers. Rather than waiting for a quarterly review, the system can identify solvency risks and distressed assets in real-time.
- Insolvency Checks:“Analyze BPH LTD for insolvency risks. Does the report mention ‘Going Concern’ issues?”
- Capability: The system retrieves the specific “Going Concern” disclosure, flagging dependencies (e.g., reliance on director support) that indicate critical credit risk.
- Risk Factor Identification:“Which companies have listed ‘Financial Instruments’ as a risk factor in their notes?”
- Capability: It filters through standard boilerplate text to find substantive risk declarations regarding market exposure.
- Valuation scrutiny:“List all companies that have disclosed a ‘Critical Estimate’ regarding their valuation.”
- Capability: This identifies companies where asset values are highly subjective and prone to impairment.
2. Mathematical Audits (The “Calculator” Verification)
Large Language Models (LLMs) are notoriously bad at math. Agentic systems solve this by giving the AI access to tools—specifically, a calculator. When a query requires computation, the “Auditor Agent” steps in to verify the numbers rather than relying on the text alone.
- Ratio Analysis:“Calculate the Current Ratio for PROTOL POWDER COATINGS. Is it above 1.0?”
- Capability: The system extracts the raw assets and liabilities figures and performs the division to verify liquidity status.
- Liquidity Stress Testing:“Perform an Acid Test on MKAYA BOOKKEEPING LIMITED. Does it have enough liquidity to pay immediate debts?”
- Capability: It excludes inventory from the calculation to provide a stricter view of the company’s immediate cash position.
- Asset Verification:“What is the total value of ‘Creditors’ vs ‘Current Assets’ for NO.1 Sweet Spot Ltd?”
- Capability: This quick comparison instantly highlights if a company is trading while insolvent.
3. Broad Spectrum Scans (“Dragnet” Intelligence)
While targeted audits focus on single entities, Agentic AI can also perform “dragnet” operations across an entire index. By broadening the search parameters, the system provides macro-level market intelligence.
- Negative Equity Screening:“List all companies that are showing negative equity or net liabilities.”
- Capability: This instantly generates a watchlist of distressed entities across the portfolio.
- “Zombie Company” Detection:“Are there any ‘Zombie Companies’ in the index? (Look for stagnant assets and high liabilities).”
- Capability: The system synthesizes multiple financial health markers to identify firms that are essentially dead but still trading.
- Portfolio Health Summaries:“Summarize the financial condition of all companies found in the latest index.”
- Capability: This provides an executive-level view of systemic health, highlighting sector-wide trends.
4. Disclosure Comparisons (Policy Benchmarking)
Financial risk often hides in the fine print of accounting policies. Agentic AI can compare qualitative text across different reports to spot outliers in governance or accounting standards.
- Governance Audits:“Compare the ‘Director Loan’ disclosures between ANNIST-KOLANU LTD and TIZZY LOVES LTD. Who has higher exposure?”
- Capability: By contrasting specific disclosure text, the system reveals where governance controls may be weak or where director loans are masking liquidity issues.
- Policy Analysis:“Summarize the accounting policy for ‘Leases’ mentioned by NO.1 Sweet Spot Ltd.”
- Capability: This allows for rapid benchmarking of accounting practices against industry norms or new compliance standards (like IFRS 16).
The Strategic Shift
The deployment of Agentic AI moves the finance function from reactive reporting to proactive insight. By autonomously verifying data integrity and identifying risks before they become public failures, these systems provide a layer of “continuous assurance” that is critical in today’s volatile economic environment.