Artificial Intelligence Applications in the Auditing Profession: A Literature Review

Abstract

This paper investigates some essential questions that might interest auditors regarding the impact of artificial intelligence (AI) applications on the auditing profession by reviewing a selective bibliography of papers published mainly between 2016 and 2020. It discusses the major AI applications in the auditing field and explores the associated benefits in increasing auditing work’s effectiveness, efficiency, and quality. It further illustrates the major internal critical considerations that should be taken into account before AI application adoption in auditing practices, from initial decision-making to the use of proper countermeasures, to ensure the successful and effective implementation of AI applications. The extent to which AI applications in the accounting and auditing field might affect current hiring practices and threaten an auditor’s job, as performed today, is discussed and various debates and contradictory opinions are presented. The major AI applications adopted by the Big Four accounting firms are also discussed.