The Auditability Problem That's Breaking Accounting AI

Please note: This episode was recorded before changes were made to the Big Beautiful Bill, which eliminated the removal of the PCAOB.

What happens when AI agents start doing your journal entries and reconciliations? Mike Whitmire, founder and CEO of Floqast, explains why accounting AI is fundamentally different from other business applications—and why auditability creates unique challenges that many companies will struggle to overcome. In this conversation, you'll learn how Floqast Transform enables accountants to build AI agents using simple narrative descriptions, thereby creating comprehensive audit trails while automating repetitive tasks. Mike walks through real-world examples, from benefit allocation journal entries to variance analysis, demonstrating how the "human-in-the-loop" approach handles exceptions and ensures compliance. Plus, hear his vision for the future accounting professional as an "accounting cyborg" who manages AI agents rather than junior staff.

Chapters

• (00:43) - Agents in Accounting
• (01:22) - Flow Cast's AI Implementation
• (02:29) - Starting Points and Use Cases
• (04:14) - Flow Cast Transform and Integration
• (06:58) - Workflow Automation and Human Review
• (16:03) - Future of AI in Auditing
• (29:11) - Materiality Thresholds and Budget Analysis
• (30:29) - Financial Statement Narratives with AI
• (32:35) - AI in Financial Analysis and Risk Detection
• (36:02) - The Role of AI in Legislative Analysis
• (37:46) - AI Tools and Automation in Accounting
• (42:40) - The Future of Accounting with AI

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Connect with Our Guest, Mike Whitmire

LinkedIn: https://www.linkedin.com/in/michaelcwhitmire/

Learn more about FloQast

http://www.floqast.com

Connect with Blake Oliver, CPA

LinkedIn: https://www.linkedin.com/in/blaketoliver
Twitter: https://twitter.com/blaketoliver/