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The application of Artificial Intelligence in external auditing and its implications on audit quality? A review of the ongoing debates

Author

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  • Favourate y Mpofu

    (University of Johannesburg)

Abstract

With the intensity of the Fourth Industrial Revolution, Artificial Intelligence (AI) is being widely adopted to perform key tasks in economic activities. The audit profession has also embraced AI in the performance of its function in carrying out activities like audits, oversight, and advisory functions. The application of AI has been met with acceptance, given its advantages in some quarters and with resistance/scepticism in some. Proponents table benefits such as improved sampling procedures, reduced labour, and time in performing audits, increased efficiency, and effectiveness (due to increased audit coverage) including improved audit quality. Opponents raise pragmatic concerns such as the violation of ethical principles governing the audit profession, potential biases (loss of employment) as well as the challenges of coordinating machine and human activities. The study has two objectives. Firstly, to explore the role of AI in the external audit function. Secondly, to evaluate the ongoing debates on artificial intelligence and external auditing and assess the implications of using AI in the external audit function. The study adopts a qualitative research approach, employing a critical literature review. The study will accentuate the controversies and convergences among researchers on the role and implications of applying AI in external auditing to bring to light possible research gaps that can be explored by future researchers on the subject area. Highlighting the potential externalities of using AI has both theoretical and practical implications. Key Words:Auditing, Artificial Intelligence, ethical, implications, audit quality

Suggested Citation

  • Favourate y Mpofu, 2023. "The application of Artificial Intelligence in external auditing and its implications on audit quality? A review of the ongoing debates," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(9), pages 496-512, December.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:9:p:496-512
    DOI: 10.20525/ijrbs.v12i9.2737
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    Cited by:

    1. Mohammed Alsaif & Duc Hong Thi Phan & Michael Kend & Mona Alharbi, 2025. "Emerging Technologies in External Audit and How They Are Challenging Auditors' Judgements and Decision‐Making Processes," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(4), pages 3347-3360, December.
    2. Fadi Bou Reslan & Nada Jabbour Al Maalouf, 2024. "Assessing the Transformative Impact of AI Adoption on Efficiency, Fraud Detection, and Skill Dynamics in Accounting Practices," JRFM, MDPI, vol. 17(12), pages 1-16, December.
    3. Favourate Y Mpofu & Queen Mpofu, 2025. "The application of digital technologies in external auditing: a double edged sword?," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 7(1), pages 39-56, January.
    4. Zulkiffly Baharom, 2025. "The Transformative Role of Artificial Intelligence in Internal Auditing: A Critical Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 2953-2966, June.

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