IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/119616.html
   My bibliography  Save this paper

Unleashing the Potential of Artificial Intelligence in Auditing: A Comprehensive Exploration of its Multifaceted Impact

Author

Listed:
  • Patel, Rajesh
  • Khan, Fatima
  • Silva, Buddhika
  • Shaturaev, Jakhongir

Abstract

This research paper examines the impact of Artificial Intelligence (AI) on the financial audit process and explores how it enhances auditing practices. The integration of AI technology in financial audits has the potential to revolutionize the profession by automating tasks, providing real-time analysis, enhancing risk assessment capabilities, and offering valuable insights. This research investigates the implications, benefits, challenges, and ethical considerations associated with AI integration in the audit process. The literature review reveals that AI improves audit efficiency by automating manual processes and reducing the time required for data analysis. AI-powered tools enable real-time analysis, enhancing risk assessment by detecting anomalies and potential fraud indicators promptly. AI algorithms also contribute to more accurate and informed decision-making by analyzing complex datasets and identifying patterns. Ethical considerations, such as fairness, transparency, and unbiased decision-making, must be addressed when integrating AI technology into audits. Based on the literature review, hypotheses are developed to test the relationships between AI and audit efficiency, risk assessment, audit quality, and decision-making. These hypotheses propose that AI integration improves audit efficiency, enhances risk assessment capabilities, facilitates more informed decision-making, and requires ethical considerations and collaboration with IT professionals for successful implementation. The findings and discussion emphasize that AI technology has significant potential implications for audit quality, efficiency, risk assessment, and decision-making. By leveraging AI's analytical capabilities, auditors can improve audit quality, proactively address risks, and make more accurate decisions. However, further empirical research is needed to validate these findings and address ethical considerations. Future research should focus on the long-term effects of AI on audit quality, explore ethical frameworks for AI integration, and examine auditors' technological skills and collaboration with IT professionals.

Suggested Citation

  • Patel, Rajesh & Khan, Fatima & Silva, Buddhika & Shaturaev, Jakhongir, 2023. "Unleashing the Potential of Artificial Intelligence in Auditing: A Comprehensive Exploration of its Multifaceted Impact," MPRA Paper 119616, University Library of Munich, Germany, revised 05 Dec 2023.
    • Handle: RePEc:pra:mprapa:119616
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/119616/1/MPRA_paper_119616.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emon Kalyan Chowdhury, 2022. "Disastrous consequence of coronavirus pandemic on the earning capacity of individuals: an emerging economy perspective," SN Business & Economics, Springer, vol. 2(10), pages 1-16, October.
    2. Emon Kalyan Chowdhury & Shafaitun Nahar, 2017. "Perceptions of Accountants toward Sustainability Development Practices in Bangladesh," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(3), pages 112-119, September.
    3. Emon Kalyan Chowdhury & Umme Humaira, 2023. "The Russia–Ukraine conflict and investor psychology in financial markets," Economic Affairs, Wiley Blackwell, vol. 43(3), pages 388-405, October.
    4. Emon Kalyan Chowdhury, 2022. "Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective," Journal of Capital Markets Studies, Emerald Group Publishing Limited, vol. 6(3), pages 225-241, October.
    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. Chowdhury, Emon, 2023. "The Impact of Commodity Market on the Economy of Developing Countries," MPRA Paper 119462, University Library of Munich, Germany, revised 05 Dec 2023.
    2. Joise, Topu & Goenka, Narsimha & Wangyel, Sangay & Shaturaev, Jakhongir, 2023. "Transforming Mobility Exploring the Impact and Challenges of Intelligent Transportation Systems in Asia," MPRA Paper 118994, University Library of Munich, Germany, revised 11 Sep 2023.
    3. Uluyol, Burhan & Hui Pu, Suan & Shaturaev, Jakhongir & Kanaparan, Geetha, 2023. "Cracking the Code of Market Secrets: A Deep Dive into Financial Anomalies," MPRA Paper 119039, University Library of Munich, Germany, revised 05 Oct 2023.
    4. Silva, Buddhika & Hasan, Amena, 2023. "Beyond the Glass Ceiling: How Women Leaders Drive Innovation and Performance in Top Management," MPRA Paper 120388, University Library of Munich, Germany, revised 13 Oct 2023.
    5. Hoang, Nga & Zhen, Zhao & Shaturaev, Jakhongir, 2023. "Decolonizing Development: Unpacking Post-Colonialism in South Asia," MPRA Paper 119245, University Library of Munich, Germany, revised 21 Nov 2023.
    6. Nahar, Kamrun & Akhter, Suraiya & Shaturaev, Jakhongir, 2024. "Impact of Artificial Intelligence on the Human Resources Management," MPRA Paper 120579, University Library of Munich, Germany, revised 08 Feb 2024.
    7. Chowdhury, Emon Kalyan, 2022. "Reaction of Stock Market to Covid-19: A South Asian Perspective," MPRA Paper 118147, University Library of Munich, Germany, revised 31 Mar 2022.
    8. Lohani, Fazle & Rahman, Mostafizur & Shaturaev, Jakhongir, 2023. "The Impact of Artificial Intelligence on Economic Patterns," MPRA Paper 118316, University Library of Munich, Germany, revised 08 Mar 2023.
    9. Chowdhury, Emon Kalyan, 2023. "Impact of Blockchain on Stock Market," MPRA Paper 118189, University Library of Munich, Germany, revised 15 Feb 2023.
    10. Murthi, Srinivash & Zhang, Wen & Shaturaev, Jakhongir, 2023. "Role of Tourism in Ensuring Gender Equity: An Asian Perspective," MPRA Paper 118486, University Library of Munich, Germany, revised 15 Jun 2023.
    11. Hasan, Kamrul & Shaturaev, Jakhongir, 2022. "Unleashing the Power of Technology: Fueling Entrepreneurship Development Through Innovation," MPRA Paper 118282, University Library of Munich, Germany, revised 10 Feb 2023.
    12. Islam, Ayub & Chowdhury, Emon Kalyan, 2023. "Investors’ Attitude toward Stock Market Risk-A Chittagong Perspective," MPRA Paper 118140, University Library of Munich, Germany, revised 09 May 2023.
    13. Shaturaev, Jakhongir, 2023. "Is Your Portfolio Free from Coronavirus?," MPRA Paper 118196, University Library of Munich, Germany, revised 27 Jan 2023.
    14. Shaturaev, Jakhongir, 2023. "Impact of Covid-19 on stock market volatility-A Bangladesh Perspective," MPRA Paper 118207, University Library of Munich, Germany, revised 10 Mar 2023.
    15. Chowdhury, Emon Kalyan, 2019. "Use of Artificial Intelligence in Stock Trading," MPRA Paper 118175, University Library of Munich, Germany, revised 18 Apr 2019.
    16. Huda, Md Nazmul & Hossain, Sayed Mohammad Athar & Shaturaev, Jakhongir, 2023. "Effect of Commodity Exchange on the Economy- Prospects and Challenges," MPRA Paper 118331, University Library of Munich, Germany, revised 14 Mar 2023.
    17. Malhotra, Manjunathan & Bhagwan, Sumitra & Shaturaev, Jakhongir, 2023. "South Asian Economic Constitutionalism: A Path to Constitutional Order," MPRA Paper 118727, University Library of Munich, Germany, revised 10 Sep 2023.
    18. Chowdhury, Emon Kalyan, 2021. "Trade-off between Fundamental and Technical Analysis," MPRA Paper 117991, University Library of Munich, Germany.
    19. Shaturaev, Jakhongir, 2023. "Impact of Cryptocurrency Market on the Performance of Stock Market- An Empirical Study," MPRA Paper 118244, University Library of Munich, Germany, revised 12 May 2023.
    20. Emon Kalyan Chowdhury & Umme Humaira, 2023. "The Russia–Ukraine conflict and investor psychology in financial markets," Economic Affairs, Wiley Blackwell, vol. 43(3), pages 388-405, October.

    More about this item

    Keywords

    Artificial Intelligence; Audit; Transparency; Fraud; Financial Accounting;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:119616. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.