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Human-in-the-Loop Services

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Human-in-the-Loop (HITL) Validation for AI-Driven Controls Testing

Building Trust in Automated Testing Programs

As organizations adopt AI-Driven Controls Testing tools, one challenge becomes increasingly clear:

AI can automate testing - but humans must validate it.

AI-based evidence extraction, sample selection, and control testing accelerates SOX/ICFR and Internal Audit plans, but regulators, auditors, and clients still require a human layer of judgment to ensure the results are reliable, complete, and aligned with internal control requirements.

That’s where our Human-in-the-Loop (HITL) service comes in.

Varah Risk Advisory Services LLP provides independent, expert review of AI-generated testing outputs to validate inputs, testing integrity, test results, and support auditor reliance.

What is HITL for Controls Testing?

HITL brings together:

AI-driven testing outputs, and human review by experienced internal controls professionals to validate:

  • completeness of evidence.
  • appropriateness of samples.
  • accuracy of test results.
  • exceptions classification.
  • conclusions drawn by the AI tool.

Our services also extend to enhancing the AI tool by training the tool through prompts or working with your IT team, as required.

This helps align AI-enabled controls testing with auditor expectations (for SOX/ICFR), enhances confidence in the results, and strengthens the underlying AI tools by incorporating continuous human feedback.

Our HITL Services include:

Evidence Verification

We validate whether:

  • AI-extracted evidence is correct, complete, and traceable.
  • Supporting documentation covers all key attributes.
  • The evidence meets audit requirements.
Output-Focused Test Review

We assess whether:

  • The test steps align to the control design.
  • Samples selected meet the required criteria.
  • Evidence supports the AI-generated conclusion.
  • Exceptions are appropriately identified.
  • Testing is complete and meets professional standards.

Important:

We do not assess:

  • AI algorithms.
  • ML model logic.
  • Internal code or system design.
  • Technical configuration of the AI tool.

Our focus is human assurance over AI outputs, not system validation.

Exception Review & Reclassification

Our professionals determine whether exceptions are:

  • Valid deficiencies.
  • Documentation gaps.
  • AI misclassifications or extraction errors.
Workpaper Standardization

We confirm that the AI-generated workpapers are:

  • Clear and logically structured.
  • Indexed and referenced.
  • Supported by documented professional judgment.
  • Aligned with PCAOB, IIA, and internal audit documentation standards.

This step turns automated outputs into high-quality documentation.

Why HITL Matters

AI brings speed and scalability - but without human validation:

  • Evidence may be incomplete or incorrectly extracted.
  • Context-specific nuances may be missed.
  • Exceptions may be misinterpreted.
  • Testing may not withstand auditor or regulator review.

With HITL review, organizations get the best of both worlds: automation + human judgment.

Why Choose Varah for HITL Validation?

  • Experienced SOX Reviewers: Big 4–trained professionals who understand stakeholder expectations.
  • Independent & Reliable: HITL review is objective and clearly documented.
  • Improved Quality: Higher accuracy in exception classification and test conclusions / findings.
  • Cost Advantage: Offshore pricing significantly lowers the cost of scaled HITL programs.

Future-Proof Your Controls Testing Program

AI-driven testing is the future - but human review ensures accuracy, reliability, and audit confidence.

Varah’s HITL service helps organizations adopt AI tools responsibly by providing the human assurance layer regulators and auditors expect.

📩 Reach out to learn how HITL can support your AI-enabled controls testing program.

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