Adoption of artificial intelligence in auditing: An exploratory study

Seethamraju, Ravi; Hecimovic, Angela

doi:10.1177/03128962221108440

Cited by 41 publications

(31 citation statements)

References 58 publications

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“…Trust is a crucial aspect of the relationship, and the creation and sustenance of trust with clients can lead to long-term relationships and augmented revenue for audit firms (van Nieuw Amerongen et al ., 2022). AI-powered auditing services can assist in building and preserving trust with clients by offering a more personalized and responsive audit process (Seethamraju and Hecimovic, 2022). By leveraging data analytics and machine learning algorithms, AI-based auditing services can adapt their auditing services to the specific needs and preferences of each client, leading to more satisfied and loyal clients.…”

Section: Background and Model Developmentmentioning

confidence: 99%

“…Today, audit firms are seen as leaders in auditing services that are based on innovation (Cooper et al, 2019), harnessing it in audit procedures and collecting new evidence that was not previously available, which had a profound impact on the leadership and development of audit firms, in addition to its impact on the nature of the relationship with audit clients (Salijeni et al, 2019). Seethamraju and Hecimovic (2022) pointed out that the profession is obligated to high-quality audits, but audits need to evolve in several important ways if they are to maintain the satisfaction and trust of their stakeholders (Manita et al, 2020). According to Harber et al (2020), the audit firms run the risk of losing the trust of some audit clients.…”

Section: Introductionmentioning

confidence: 99%

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A deep learning-based SEM-ANN analysis of the impact of AI-based audit services on client trust

Rawashdeh

2023

JAAR

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PurposeThe advent of technology has propelled audit firms to incorporate AI-based audit services, bringing the relationship between audit clients and firms into sharper focus. Nonetheless, the understanding of how AI-based audit services affect this relationship remains sparse. This study strives to probe how an audit client's satisfaction with AI-based audit services influences their trust in audit firms. Identifying the variables affecting this trust, the research aspires to gain a deeper comprehension of the implications of AI-based audit services on the auditor-client relationship, ultimately aiming to boost client satisfaction and cultivate trust.Design/methodology/approachA conceptual framework has been devised, grounded in the client-company relationship model, to delineate the relationship between perceived quality, perceived value, attitude and satisfaction with AI-based audit services and their subsequent impact on trust in audit firms. The research entailed an empirical investigation employing Facebook ads, gathering 288 valid responses for evaluation. The structural equation method, utilized in conjunction with SPSS and Amos statistical applications, verified the reliability and overarching structure of the scales employed to measure these elements. A hybrid multi-analytical technique of structural equation modeling and artificial neural networks (SEM-ANN) was deployed to empirically validate the collated data.FindingsThe research unveiled a significant and positive relationship between perceived value and client satisfaction, trust and attitude towards AI-based audit services, along with the link between perceived quality and client satisfaction. The findings suggest that a favorable attitude and perceived quality of AI-based audit services could enhance satisfaction, subsequently augmenting perceived value and client trust. By focusing on the delivery of superior-quality services that fulfill clients' value expectations, firms may amplify client satisfaction and trust.Research limitations/implicationsFurther inquiries are required to appraise the influence of advanced technology adoption within audit firms on client trust-building mechanisms. Moreover, an understanding of why the impact of perceived quality on perceived value proves ineffectual in the context of audit client trust-building warrants further exploration. In interpreting the findings of this study, one should consider the inherent limitations of the empirical analysis, inclusive of the utilization of Facebook ads as a data-gathering tool.Practical implicationsThe research yielded insightful theoretical and practical implications that can bolster audit clients' trust in audit firms amid technological advancements within the audit landscape. The results imply that audit firms should contemplate implementing trust-building mechanisms by creating value and influencing clients' stance towards AI-based audit services to establish trust, particularly when vying with competing firms. As technological evolutions impinge on trustworthiness, audit firms must prioritize clients' perceived value and satisfaction.Originality/valueTo the researcher's best knowledge, no previous study has scrutinized the impact of satisfaction with AI-based audit services on cultivating audit client trust in audit firms, in contrast to past research that has focused on the auditors' trust in the audit client. To bridge these gaps, this study employs a comprehensive and integrative theoretical model.

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Section: Background and Model Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A deep learning-based SEM-ANN analysis of the impact of AI-based audit services on client trust

Rawashdeh

2023

JAAR

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“…This demonstrates the need for auditors to change with the times and develop the ability to use automated auditing techniques successfully (Thottoli et al , 2019). Hence, the Adoption of AI necessitates reconsidering audit procedures in light of the alleged absence of control in AI “black box,” which could make audit procedures even more obscure and subject to greater scrutiny on audit quality (Seethamraju and Hecimovic, 2023). Current efforts mainly focus on advertising particular software programs that solely deal with specific areas of the knowledge management problem.…”

Section: Introductionmentioning

confidence: 99%

Leveraging information communication technology (ICT) and artificial intelligence (AI) to enhance auditing practices

Thottoli

2024

ARJ

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Purpose In the fourth industrial revolution, where business accounting integrates with automation through artificial intelligence (AI) and information communication technology (ICT), auditors must be able to access and analyze vast data and information to identify potential risks and issues. Using data analytics and AI to study significant amounts of data linked to audits, this study aims to investigate auditing practices by leveraging ICT and AI to enhance the audit process. Design/methodology/approach Bibliometric and quantitative research techniques have been used in the study’s mixed-method process. The theoretical underpinnings of AI have been investigated using the bibliometric research method, and the challenge of implementing ICT-enabled auditing practices among auditing professionals has been studied using the quantitative research method. Surveys, interviews and bibliometric analysis have all been used as data-gathering techniques. Findings Research in AI and auditing has a broad worldwide scope, involving developed and developing nations. ICT perceived benefits have no direct effect on auditing practices. However, ICT training has a mediating effect on the relationship between ICT perceived benefits and auditing practices. ICT adoption has no moderating effect on the relationship between ICT training and auditing practices. Research limitations/implications Findings have significance for lead auditors, policymakers and the Institute of Chartered Accountants of India (ICAI), who are keenly interested in upgrading the auditing practice of accounting professionals in India by incorporating AI and ICT determinants. Practical implications This research makes a significant contribution by offering a thorough framework for improving the knowledge management of practising auditors regarding ICT adoption, training and perceived benefits, a crucial component of auditing practices in the digital age. In addition, it provides insightful information about how AI affects accounting practices, which may point the way for further study in this area. Originality/value This research has significant implications for auditing firms in India. It can inform ICAI, policymakers and regulators in their attempts to foster the incorporation of AI and ICTs in auditing practice.

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“…For example, AI can automate repetitive tasks, classify items, upload documents automatically, provide more accurate information by processing the collected data and recommend the track to find the best possible findings (Maione and Leoni, 2021). Moreover, AI can provide value-added services to accounting clients, such as predictive analytics, risk assessment, fraud detection and business insights (Seethamraju and Hecimovic, 2022). As a result, the automation of accounting processes is fast becoming necessary for accounting firms that want to remain competitive in the fast-paced business environment (Chukwuani and Egiyi, 2020).…”

Section: Introductionmentioning

confidence: 99%

Factors influencing artificial intelligence adoption in the accounting profession: the case of public sector in Kuwait

Al Wael,

Abdallah,

Ghura

et al. 2023

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Purpose This study aims to investigate the organizational and individual factors that influence the adoption of artificial intelligence (AI) in Kuwait's public accounting sector. Design/methodology/approach The methodology of this study is a cross-sectional survey of 393 experienced accounting professionals, using partial least square structural equation modeling to analyze the data. Findings The findings show that organizational culture, regulatory support, perceived usefulness and ease of use have a direct positive effect on AI adoption, while perceived usefulness and ease of use also have an indirect positive effect through accounting profit and behavioral intention. However, the availability of resources, effective communication channels and competition pressure have an insignificant impact on AI adoption. Originality/value This study pioneers a structural framework to elucidate the perceived enhancement of accounting quality through AI system integration. Further, this research adds to the literature on AI adoption in accounting. This study also offers empirical evidence regarding how organizations in Kuwait's public accounting sector view AI systems in accounting.

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Adoption of artificial intelligence in auditing: An exploratory study

Cited by 41 publications

References 58 publications

A deep learning-based SEM-ANN analysis of the impact of AI-based audit services on client trust

A deep learning-based SEM-ANN analysis of the impact of AI-based audit services on client trust

Leveraging information communication technology (ICT) and artificial intelligence (AI) to enhance auditing practices

Factors influencing artificial intelligence adoption in the accounting profession: the case of public sector in Kuwait

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