Integration of Artificial Intelligence in Auditing : the Effect on Auditing Process

Abstract: Business growth comes with complexity in operations, leveraging on the use of technology-based decision tools are becoming prominent in today's business world. Consequently, the audit profession is tuning into this change with the integration of artificial intelligence systems to stay abreast of the transformation. The study is a qualitative research. It adopted an abductive approach. Data used for the study was collected through a semi-structured interview conducted with auditors from auditing firms within Sweden that has adopted the use of  AI-based tools in their audit process. As a result of exponentially increasing data, auditors need to enhance the processing capability while maintaining the effectiveness and reliability of the audit process. The study strongly agree that the use of AI systems enhances effectiveness in all stages of audit process as well as increases professionalism and compliance with standards. The study however favored the use of AI-enabled auditing systems as opposed to the use of traditional auditing tools. Acquiring adequate skills in handling the AI tool and sound professional skepticism of auditors was seen to be an underlying factor that would further boost the interaction between AI tools and audit process. This prompted the need to modify the initially drawn research model to include skills in handling IT tools and audit professional competency. This which substantiated the abductive approach of the study.