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Artificial Intelligence Adoption in Smaller Audit Practices

Author

Listed:
  • Mohd Syazwan Karim
  • Nur Farahah Mohd Pauzi
  • Adriana Shamsudin
  • Siti Nurulhuda Mamat
  • Muhammad Mukhlis Abdul Fatah
  • Khairiah Ahmad
  • Nurfarahin Roslan

Abstract

The emergence of new technologies, such as Artificial Intelligence (AI), is anticipated to profoundlyimpact the accounting and auditing sectors. AI is essential for automating repetitive tasks and enhancing auditjudgment. This study seeks to investigate the adoption of AI in small audit firms in Malaysia. A qualitativeresearch design was employed, involving semi-structured interviews with nine audit supervisors from smallaudit firms in Kuala Lumpur, Negeri Sembilan, Pahang, and Melaka. The discussion focuses on two elements:(1) Perceived Usefulness (PU) – emphasizing how AI enhances audit efficiency and accuracy, and (2) PerceivedEase of Use (PEU) – highlighting the ease of adoption and integration of AI tools into existing audit workflows.The findings reveal that AI is perceived as a valuable tool in small audit firms, improving audit quality andworkflow by significantly accelerating the audit process. However, human expertise is still required for certaincomplex tasks and decision-making. Hence, it is crucial to communicate the AI’s capabilities and constraints toprevent users from experiencing undue disappointment. The findings of this study aim to assist regulators andstandard-setters in developing guidelines, principles, and frameworks for AI adoption among audit firms inMalaysia.

Suggested Citation

  • Mohd Syazwan Karim & Nur Farahah Mohd Pauzi & Adriana Shamsudin & Siti Nurulhuda Mamat & Muhammad Mukhlis Abdul Fatah & Khairiah Ahmad & Nurfarahin Roslan, 2025. "Artificial Intelligence Adoption in Smaller Audit Practices," Information Management and Business Review, AMH International, vol. 17(1), pages 241-250.
    • Handle: RePEc:rnd:arimbr:v:17:y:2025:i:1:p:241-250
    DOI: 10.22610/imbr.v17i1(I)S.4381
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    References listed on IDEAS

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    2. Isaiah Oluwasegun Adeoye & Rufus Ishola Akintoye & Theophilus Anaekenwa Aguguom & Olubusola Ayoola Olagunju, 2023. "Artificial intelligence and audit quality: Implications for practicing accountants," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 13(11), pages 756-772.
    3. Chan, David Y. & Vasarhelyi, Miklos A., 2011. "Innovation and practice of continuous auditing," International Journal of Accounting Information Systems, Elsevier, vol. 12(2), pages 152-160.
    4. Shamsul Nahar Abdullah & Azbariyah Abdul Aziz & Batrisyia Qysara Saifulazri, 2023. "The impact of information technology on accounting systems towards SME performance in Malaysia," Journal of Social Economics Research, Conscientia Beam, vol. 10(2), pages 69-80.
    5. Ravi Seethamraju & Angela Hecimovic, 2023. "Adoption of artificial intelligence in auditing: An exploratory study," Australian Journal of Management, Australian School of Business, vol. 48(4), pages 780-800, November.
    6. Huang, Feiqi & Vasarhelyi, Miklos A., 2019. "Applying robotic process automation (RPA) in auditing: A framework," International Journal of Accounting Information Systems, Elsevier, vol. 35(C).
    7. Hamed Taherdoost, 2018. "A review of technology acceptance and adoption models and theories," Post-Print hal-03741843, HAL.
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