IDEAS home Printed from https://ideas.repec.org/a/eee/joaced/v72y2025ics0748575125000363.html

Leveraging AI in auditing: Exploring PCAOB deficiencies with ChatGPT

Author

Listed:
  • Marcy, Amanda S.
  • Boyle, Douglas M.
  • Gomaa, Ahmed A.
  • Li, Yibai

Abstract

This case introduces you to the use of Large Language Models (LLMs), such as ChatGPT, in auditing, focusing on their application in evaluating Public Company Accounting Oversight Board (PCAOB) inspection reports. You will use chatbot technology to analyze audit deficiencies, identify related PCAOB Auditing Standards, identify affected financial statement accounts or disclosures, and summarize trends across multiple years. Additionally, you will use chatbot technology to generate and critique memos for firm leadership, highlighting strengths, limitations, and areas for improvement in AI-generated outputs. The case emphasizes developing technical knowledge of PCAOB processes and chatbot technology while fostering skills in prompt engineering, evaluation of AI-generated output, and professional writing. By requiring you to document prompts and outputs, the case ensures originality and encourages iterative learning. This case offers an innovative approach to integrating emerging technologies into accounting education, preparing you for the future of auditing.

Suggested Citation

  • Marcy, Amanda S. & Boyle, Douglas M. & Gomaa, Ahmed A. & Li, Yibai, 2025. "Leveraging AI in auditing: Exploring PCAOB deficiencies with ChatGPT," Journal of Accounting Education, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:joaced:v:72:y:2025:i:c:s0748575125000363
    DOI: 10.1016/j.jaccedu.2025.100985
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0748575125000363
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jaccedu.2025.100985?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Fogarty, Timothy J. & Campbell, Cory, 2024. "The big data crossroads: Accounting education and the challenge of 21st century technology," Journal of Accounting Education, Elsevier, vol. 68(C).
    2. Gu, Hanchi & Schreyer, Marco & Moffitt, Kevin & Vasarhelyi, Miklos, 2024. "Artificial intelligence co-piloted auditing," International Journal of Accounting Information Systems, Elsevier, vol. 54(C).
    3. Andiola, Lindsay M. & Masters, Erin & Norman, Carolyn, 2020. "Integrating technology and data analytic skills into the accounting curriculum: Accounting department leaders’ experiences and insights," Journal of Accounting Education, Elsevier, vol. 50(C).
    4. Zhang, Chanyuan (Abigail) & Cho, Soohyun & Vasarhelyi, Miklos, 2022. "Explainable Artificial Intelligence (XAI) in auditing," International Journal of Accounting Information Systems, Elsevier, vol. 46(C).
    5. O’Hara, Richard C. & Simmons, Valerie & Kogan, Gregory & Boyle, Douglas M., 2024. "Developing a STEM-designated accounting curriculum," Journal of Accounting Education, Elsevier, vol. 69(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Blondeel, Eva & Bullock, Taylor & Gaskin, James & Schuetzler, Ryan & Serre, Rachel & Steffen, Jacob & Wells, Taylor M. & Wood, David A., 2025. "The effects of generative artificial intelligence (GenAI) on learning in an accounting data analytics course," Journal of Accounting Education, Elsevier, vol. 72(C).
    2. Churyk, Natalie Tatiana & Eaton, Tim V. & Matuszewski, Linda J., 2025. "Accounting education literature review (2024)," Journal of Accounting Education, Elsevier, vol. 71(C).
    3. Goodell, John W. & Ben Jabeur, Sami & Saâdaoui, Foued & Nasir, Muhammad Ali, 2023. "Explainable artificial intelligence modeling to forecast bitcoin prices," International Review of Financial Analysis, Elsevier, vol. 88(C).
    4. Chen, Xun-Qi & Ma, Chao-Qun & Ren, Yi-Shuai & Lei, Yu-Tian & Huynh, Ngoc Quang Anh & Narayan, Seema, 2023. "Explainable artificial intelligence in finance: A bibliometric review," Finance Research Letters, Elsevier, vol. 56(C).
    5. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M., 2021. "Accounting education literature review (2020)," Journal of Accounting Education, Elsevier, vol. 55(C).
    6. Sutton, Steve G. & Arnold, Vicky & Holt, Matthew, 2023. "An extension of the theory of technology dominance: Capturing the underlying causal complexity," International Journal of Accounting Information Systems, Elsevier, vol. 50(C).
    7. Li, Yueqi & Goel, Sanjay, 2025. "Artificial intelligence auditability and auditor readiness for auditing artificial intelligence systems," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    8. Emilio Abad-Segura & Mariana-Daniela González-Zamar, 2020. "Research Analysis on Emerging Technologies in Corporate Accounting," Mathematics, MDPI, vol. 8(9), pages 1-29, September.
    9. Stratopoulos, Theophanis C. & Wang, Victor Xiaoqi, 2025. "Artificial intelligence and accounting research: a framework and agenda," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    10. Susanne Leitner-Hanetseder & Christoph Eisl & Carina Knoll & Othmar M. Lehner, 2021. "Need For Advanced It Skills For Accountants €“ What Does Accounting Education Literature Tell Us?," Business Education and Accreditation, The Institute for Business and Finance Research, vol. 13(1), pages 57-69.
    11. Nur Syuhada Jasni & Liyana Nadhirah Kamal, 2026. "Data Literacy in Accounting Education: Pedagogical Strategies, Analytics Tools and Global Standards Alignment," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(26), pages 256-266, January.
    12. Vitali, Sonia & Giuliani, Marco, 2024. "Emerging digital technologies and auditing firms: Opportunities and challenges," International Journal of Accounting Information Systems, Elsevier, vol. 53(C).
    13. Abdo-Salloum, Ahmad Mohamad & Al-Mousawi, Hasan Yousef, 2025. "Accounting Students’ Technology Readiness, Perceptions, and Digital Competence Toward Artificial Intelligence Adoption in Accounting Curricula," Journal of Accounting Education, Elsevier, vol. 70(C).
    14. Lin, Yu-Cheng & Padliansyah, Roni & Lu, Yu-Hsin & Liu, Wen-Rang, 2025. "Bankruptcy prediction: Integration of convolutional neural networks and explainable artificial intelligence techniques," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    15. Drum, Dawna & Hoelscher, Jamie, 2024. "Was it miss appropriate in the theater with the cash register? An employee fraud case," Journal of Accounting Education, Elsevier, vol. 69(C).
    16. Kokina, Julia & Blanchette, Shay & Davenport, Thomas H. & Pachamanova, Dessislava, 2025. "Challenges and opportunities for artificial intelligence in auditing: Evidence from the field," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    17. Fábio Albuquerque & Paula Gomes Dos Santos, 2023. "Recent Trends in Accounting and Information System Research: A Literature Review Using Textual Analysis Tools," FinTech, MDPI, vol. 2(2), pages 1-27, April.
    18. Abraham Itzhak Weinberg & Alessio Faccia, 2025. "Machine Learning for Triple-Entry Accounting: Enhancing Transparency and Oversight," JRFM, MDPI, vol. 18(9), pages 1-19, September.
    19. Simmons, Valerie & Kogan, Gregory & Boyle, Douglas M. & O’Hara, Richard C., 2024. "STEM designation for accounting programs: Insights from accounting department directors," Journal of Accounting Education, Elsevier, vol. 69(C).
    20. Fotoh, Lazarus Elad & Mugwira, Tatenda, 2025. "Exploring Large Language Models in external audits: Implications and ethical considerations," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joaced:v:72:y:2025:i:c:s0748575125000363. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-accounting-education .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.