Cyprus Audit Office plans AI project to speed up audits and boost on-site inspections

Nicosia, Cyprus. The Audit Office intends to use artificial intelligence to speed up its work, spot possible irregularities and give auditors more time for on-site inspections, auditor-general Andreas Papaconstantinou said on Friday. He spoke while presenting the office’s 2027 budget to the House finance committee.

AuditAI project

Papaconstantinou said a major co-funded project named AuditAI is in the planning stage. Under it, AI would carry out preliminary assessments and flag possible warning signs, described as “red flags”, that need closer examination.

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He said the technology would shorten the time needed for audits and for drafting reports, so staff could spend more time on inspections and other substantive tasks.

Reports published and targeted

So far in 2026 the office has submitted 31 reports and five memoranda, and another 23 reports are being prepared. According to Papaconstantinou, the aim is to publish between 45 and 50 reports by the end of the year, which could mean two reports a week.

Budget for 2027

The proposed 2027 budget is €12.06 million. That is roughly €810,000, or 7.2 per cent, more than the €11.26 million for 2026.

Personnel costs make up 82 per cent of the total, 7.5 per cent is earmarked for consultancy services and five per cent for software purchases.

Money has also been set aside for staff training in Cyprus and abroad. The purpose is to improve early risk identification, strengthen accountability and ensure more efficient management of public resources.

Papaconstantinou said the budget concentrates on improving internal operations, reinforcing cooperation, making better use of staff expertise and finishing audits faster and to a higher standard.

Staffing and salary scales

On staffing arrangements and pay scales, he said practices elsewhere in the public sector had been taken into account, in particular the qualifications demanded of auditors.

He explained that auditors must obtain professional qualifications, including chartered accountant certification. The time needed to gain these qualifications was considered when salary progression was set.