THE ROLE OF ARTIFICIAL INTELLIGENCE IN AUDITING AND ASSURANCE

Journal of Business Ethics

Accounting firms are reporting the use of Artificial Intelligence (AI) in their auditing and advisory functions, citing benefits such as time savings, faster data analysis, increased levels of accuracy, more in-depth insight into business processes, and enhanced client service. AI, an emerging technology that aims to mimic the cognitive skills and judgment of humans, promises competitive advantages to the adopter. As a result, all the Big 4 firms are reporting its use and their plans to continue with this innovation in areas such as audit planning risk assessments, tests of transactions, analytics, and the preparation of audit work-papers, among other uses. As the uses and benefits of AI continue to emerge within the auditing profession, there is a gradual awakening to the fact that unintended consequences may also arise. Thus, we heed to the call of numerous researchers to not only explore the benefits of AI but also investigate the ethical implications of the use of this emerging technology. By combining two futuristic ethical frameworks, we forecast the ethical implications of the use of AI in auditing, given its inherent features, nature, and intended functions. We provide a conceptual analysis of the practical ethical and social issues surrounding AI, using past studies as well as our inferences based on the reported use of the technology by auditing firms. Beyond the exploration of these issues, we also discuss the responsibility for the policy and governance of emerging technology.

INTERNAL AUDITING & RISC MANAGEMENT - No 67 - Supplement May 2023 - Athenaeum University - ISSN-L 2065 – 8168; ISSN (e) 2068 – 2077; ISSN (p) 2065 - 8168, 2023

The technological evolution in the last decade has led to the extensive integration of Artificial Intelligence (AI) into various fields, including audit and accounting. This research addresses the profound transformation of audit and accounting methodologies through the integration of AI-based technologies. Focusing on the application of linear regression in financial data analysis, this study explores the efficiency and accuracy of AI in interpreting, analyzing, and predicting financial models. Using simulated data sets and implementing the model in Python, the results show a strong correlation between the level of AI implementation and audit efficiency. Our vision for the future suggests a deep collaboration between human capability and artificial intelligence, allowing for a more accurate and efficient audit. This transformation will require ongoing adaptation from professionals and industry regulations.

Journal of Accounting, Business and Finance Research, 2021

The purpose of this study is to examine the use of artificial intelligence to improve audit quality, combined with the competence and skepticism of auditors on client satisfaction. The unit of analysis in this study was selected as a sample based on the purposive sampling method which was chosen deliberately with certain criteria that have been determined by the researcher. The main source of data used in this study comes from primary data, namely questionnaires distributed directly via email to each respondent. Respondents in this study were middle level management, who were directly related to auditors at the time of the audit of companies listed on the Jakarta Stock Exchange. The sample in this study numbered 229 respondents who were processed and analyzed using SEM PLS. This research is based on the Society 5.0 era where data connects and moves everything; a system that connects the virtual world and the real world. The era of the fourth industrial revolution, where the discovery of the internet of things allows the interconnection between machines, big data, acquisition, machine learning, smart factories and others, and financial reports to be made using a computerized system. The global Covid-19 pandemic has had an impact on almost all sectors and restrictions on activities. As a result of the corona virus, most activities or work are carried out from home. The results of this study prove that the effect of the application of artificial intelligence combined with auditor competence and auditor professional skepticism creates client satisfaction.

Universal Journal of Accounting and Finance, 2021

Technology is an inevitable part of businesses and human lives. It has brought about substantial changes in the way businesses and operations are conducted. A business organization has to perform auditing which involves analyzing and testing a large volume of financial transactions. In manual auditing, testing and analyzing the entire transactions in a business are not possible. The usage of artificial intelligence (AI) and Machine Learning (ML) not only allows testing the entire financial transactions in a business but also helps improve audit efficiency. Audit efficiency relates to the professional skepticism and professional judgment demonstrated by the auditors. The core purpose of the research is to understand the perception of auditors on the impact of such technologies on professional skepticism and the judgment of internal auditors in improving audit efficiency. To understand the impact of AI and ML, various factors influencing the use of AI and ML and the challenges were considered. Data were collected from 169 respondents spanning across all sectors in Oman using a structured questionnaire. The collected data were analyzed using correlation to determine the relationship between AI and ML-assisted auditing practices and professional skepticism and professional judgment. Results indicate that AI and ML-assisted auditing practices have a strong positive relationship with professional skepticism and professional judgment. This proves that AI andML have an impact on professional skepticism and professional judgment. Moreover, it helps in improving the detection of errors and material misstatements. Even though the advantages of AI and ML outweigh manual auditing, the complete replacement of human beings with AI and ML should be considered with caution. Hence, auditing must be carried out with the help of AI and ML along with human intervention in improving auditing efficiency.

Journal of Multidisciplinary Bulletin (WARJMB), 2025

This study investigates the impact of Artificial Intelligence (AI) on the effectiveness of audit quality in Nigeria from auditors' perspectives. Focusing on three core AI dimensions AI adoption rate, AI maturity and AI reliance the study explores how these constructs shape audit outcomes in terms of objectivity, accuracy, compliance and risk assessment. Using a structured survey distributed to 500 professional auditors across audit firms, regulatory bodies and listed companies, the study analyzed responses from 412 participants in addition to the 15 percent attrition added. Data was subjected to descriptive statistics, factor analysis and multiple regression analysis via SPSS. Results indicates that AI adoption rate significantly enhances audit effectiveness by improving fraud detection and audit precision. AI maturity was found to positively influence the strategic integration of technology in audit workflows, enhancing timeliness and compliance. However, while AI reliance also showed a positive influence, excessive dependence could compromise professional skepticism and ethical judgment. The study emphasizes the importance of balanced AI usage, continuous professional training and regulatory support for optimal AI integration in auditing. Key policy recommendations include developing ethical frameworks, enhancing auditor competence and establishing AI maturity benchmarks. This research contributes to the literature on technology in auditing and provides a strategic guide for audit firms and regulators navigating AI transformation in emerging economies like Nigeria.

Shodh Sari-An International Multidisciplinary Journal

The rapid evolution of artificial intelligence (AI) technologies has brought about transformative changes in various industries, and the field of auditing is no exception. This research paper presents a comprehensive review of the integration of AI in auditing practices, highlighting its applications, benefits, and associated challenges. Auditing, a critical process for ensuring the accuracy and reliability of financial information, has traditionally been a labor-intensive and time-consuming endeavor. The emergence of AI technologies, such as machine learning, natural language processing, and data analytics, has revolutionized the way audits are conducted. AI-powered auditing tools offer advanced capabilities for data analysis, pattern recognition, anomaly detection, and risk assessment. These capabilities enhance the effectiveness and efficiency of audits by allowing auditors to focus on high-risk areas and perform more in-depth analysis. The paper explores various applications of ...

International Academic & Research Consortium, 2021

Artificial intelligence (AI) and Machine Learning (ML) are the most advanced technologies, which is being rapidly developed around the globe. T his has already brought massive transformation in human life and the many business acumen and auditing is not an exception. Many of the large auditing firm already started experimenting the application of various AI and ML in to auditing practices. In this study researchers are trying to understand how AI and ML enabled auditing enhances a better Professional skepticism and Judgement of auditors and also what are the factors influence and challenges for application of AI and ML in internal auditing. Data has been collected from internal auditors of different business sectors in Oman and the result shows that AI and ML enabled auditing practices can enhance the Professional Skepticism and Professional Judgement of auditors. Attitude of top management towards adoption of new technologies has been identified by the internal auditors as most important factor influencing application of AI and ML in auditing practices and validation of data is major challenge according to the internal auditors.

2024

Based on the significance of AI adoption in the accounting field, this study intends to investigate its impact on the accounting profession; specifically on the efficiency and quality of financial data, financial fraud detection and tax filings, and work activities and skill requirements of accountants. A quantitative method was employed, and a questionnaire was sent to a purposive sample of 454 accountants. The results confirm that AI adoption in accounting significantly enhances the efficiency and quality of financial data, positively influences financial fraud detection and tax filings, and alters work activities and skill requirements within the accounting profession. These results highlight the transformative role of AI in modern accounting practices. Notably, the study incorporates demographic variables such as age and experience, uncovering their mediating influence on perceptions of AI’s impact. Conducted in Lebanon, a developing country facing economic and political instability, the research provides valuable contextual insights into AI adoption under challenging conditions. This study contributes to the literature by empirically demonstrating AI’s transformative role in accounting, offering both theoretical advancements and actionable recommendations for professionals aiming to harness AI for improved performance and innovation.

Decision Science Letters, 2024

This research attempts to investigate the effect of types of AI systems (assisted, augmented, and autonomous) on internal auditing in Saudi Arabia. A questionnaire was used to collect data from 150 internal auditors in Riyadh City. To confirm that the study's goals were met, the descriptive analytical method was used. The questionnaire data is analyzed, and hypotheses are tested, using the Smart pls application. The study's results show that there is a clear positive effect of AI systems, but different impacts vary according to the kind of AI systems, which is high in augmented systems, moderate in autonomous systems, and weak in assistive intelligence systems. Further studies on this subject can be conducted with larger sample sizes, especially if they are conducted globally. Based on these findings, future research can concentrate on national and cultural conditions. Additionally, companies should adopt more comprehensive involvement methods in internal auditing issues and the development of AI adoption in all company activities. .